What else can we make to improve our performance? ENVIRONMENT AND To provide your feedback about our performance, please SUSTAINABILITY contact us at [email protected] REPORT or visit www.kumtor.kg.

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 1 ABOUT KUMTOR MINE

Kumtor mine is one of the largest western-operated gold mines in Central Asia. It has been operating since May 1997 and has produced approximately 12.6 million ounces of gold to December 31, 2019. Kumtor Gold Company CJSC (KGC) is the concession holder for the Kumtor deposit and is responsible for the entire production cycle.

The Kumtor open pit mine is located approximately 350 Centerra also owns late-stage development properties: kilometers southeast of the southeast of the capital of the the Oksut Gold Project in Turkey, the Kemess Project in Kyrgyz Republic, Bishkek, and 60 kilometers north of the British Columbia, Canada, which includes the Kemess border with the People's Republic of China. It is at an altitude Underground and the Kemess East gold-copper projects, of 4,000 meters above sea level in a partially glaciated and a 50% interest in the Greenstone Gold Property which permafrost zone in the Central Tien Shan Mountains. The includes the Hardrock Gold Project in northwestern Ontario, current life of the Kumtor mine is until 2026. Canada. Centerra through its acquisition of Thompson Creek Metals Company in 2016, also owns a well-established, fully About Centerra integrated Molybdenum Business consisting of an operating metallurgical processing facility and two primary molybdenum Centerra Gold Inc. (Centerra) is the parent company, which mines, which are currently on care and maintenance. owns 100% of Kumtor Gold Company. Centerra is a publicly listed, Canadian-based gold mining company engaged The Company also has active exploration joint ventures and in operating, developing, acquiring, and exploring gold exploration properties in Canada, Finland, Mexico, Sweden, properties in North America, Asia and other emerging markets Turkey and the United States. Kyrgyzaltyn OJSC, a state- worldwide. The Company is one of the largest Western-based owned entity, is Centerra's largest shareholder, owning gold producer in Central Asia and its shares trade on the 77,401,766 shares. Toronto Stock Exchange (TSX) under the symbol CG. Additional information on Centerra is available at SEDAR Centerra operates two flagship assets: the Kumtor gold mine in (www.sedar.com) and on the Company's website the Kyrgyz Republic and the Mount Milligan gold-copper mine (www.centerragold.com). in British Columbia, Canada.

About this Report This document is the Kumtor Annual Environment and note our Cautionary Note regarding the forecast information Sustainability Report for the 2019 financial year (ending on the inside back cover. This report will also be available in December 31, 2019) except where otherwise noted. This the Russian and Kyrgyz languages. As we continue to further report is focused on the Kumtor mine in the Kyrgyz Republic. improve our systems and approaches, we welcome your Performance data include only Kumtor's own operations, comments and suggestions on how we can further improve unless noted otherwise, although the policies of Centerra and our annual environmental and social reporting and practices. Kumtor apply to both employees and contractors. Financial You can find contact details on the back cover of this report. metrics are reported in US dollars (USD) unless otherwise stated. This report has been prepared in accordance with GRI Standards: Core option. In addition the Report addresses the key reporting requirements centered in Kumtor's Environment Managemeent Action Plan (EMAP). For each specific sector various indicators set in GRI's Mining and Metals Sector Supplement (see www.globalreporting.org) are disclosed. In determining the scope, content, and boundaries of this report, we considered an importance evaluation process 102-1/ described in the Governance Section of this Report. Please 102-2/ 102-4/ 102-5/ 102-6/ 102-45/ 102-46/ 102-49/ 102-50/ 102-51/ 102-52/ 102-54

2 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 CONTENTS About Kumtor mine ...... 2 About this report ...... 2 Message from the President ...... 4 Operations Overview...... 8 Environmental and Sustainability Snapshot ...... 10

1 Governance 1.1 Governance Model ...... 14 1.2 Sustainability Management...... 18 1.3 Risk Management and Continuous Improvement ...... 18 1.4 Materiality Assessment...... 20 1.5 Business Ethics ...... 23

2 Economic value 2.1 Economic Performance ...... 26 2.2 Local Procurement...... 28

3 People 3.1 Workplace Practices ...... 32 3.2 International Women in Mining Profile ...... 34 3.3 Occupational Health and Safety ...... 43

4 Environment 4.1 Environmental Responsibility...... 50 4.2 Environmental Monitoring...... 52 4.3 Biodiversity...... 56 4.4 Energy Use and Carbon Emissions...... 64 4.5 Air Emissions...... 66 4.6 Waste Management...... 70 4.7 Unprocessed Waste Rock...... 73 4.8 Tailings Management...... 74

5 Glaciers and water management 5.1 Water Use and Treatment...... 76 5.2 Water Quality and Compliance...... 80 5.3 Glacier Management...... 84 5.4 Petrov Lake Water Balance...... 88

6 Social responsibility 6.1 Stakeholder Engagement...... 90 6.2 Community Investment Projects...... 95

7 Kumtor Mine Closure 7.1 Tailings Management Facility (TMF) Closure...... 101 7.2 Waste Rock Dump Closure...... 102 7.3 Post-Mining Land Use...... 102 7.4 Socio-Economic Impacts of Mine Closure...... 103 7.5 Social Impacts of Mine Closure...... 106 7.6 Closure Costs...... 108

Glossary and Abbreviations...... 110 Performance Data...... 113 GRI Content Index...... 116 Appendix Environmental Monitoring Data...... 120 Cautionary Note Regarding Forward-Looking Statement...... 135

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 3 MESSAGE FROM THE PRESIDENT

The progress we have achieved, as well as the challenges we faced in 2019, are described in this report. Our team can be proud of its operating performance. We have exceeded almost all performance results in gold production, maintenance, ore processing and reduction of total costs. ZERO INCIDENTS remain our number one target which means we will continue to prioritize our Work Safe | Home Safe program, as well as tools such as Reliable Control and Visible Felt Leadership principle. In late 2019, the Strategic Agreement on Environmental Protection and Investment Promotion with the Government of the Kyrgyz Republic concluded and came into force. This agreement provided additional incentive for the Company's development and created additional opportunities for the Kyrgyz Republic.

in 2019 (including taxes, refinery fee, local procurement of Contribution to the Country goods and services, infrastructure, donnations, etc.) amounted Economy to $366 million, making the total of payments since 1994 more than $4.0 billion. KGC is the largest taxpayer and largest KGC remains an enterprise that makes a significant employer in the private sector of the Kyrgyz Republic. By the contribution to the economy of the Kyrgyz Republic. In 2019, end of 2019, the company employed 2,631 Kyrgyz citizens, or our production activity accounted for 20.8% of industrial 99% of the total number of the full-time workforce. output and 9.8% of GDP. Payments in the Kyrgyz Republic

4 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 KGC remains an enterprise that makes a significant contribution to the economy of !the Kyrgyz Republic Kyrgyz Republic. As further described in the report, we involve Increasing Local Procurement leading local and international experts and use advanced We believe that a strategic approach to procurement in the technologies for monitoring and assessing geotechnical safety local market will not only benefit our company, but also and implementing the activities necessary to ensure the proper contribute to the development of local communities by level of safety of Kumtor mine. creating jobs and developing the economy of the Issyk-Kul region. We continue to promote and support local business Health and Safety and in 2019 our company spent about $71 million on local procurement. Starting from 2008, 100% of goods are On December 1, 2019, a rockslide occurred at the Kumtor Lysyi purchased in the local market. waste rock dump. As a result, two employees of the Company who worked at this work area were considered missing. The Company immediately notified all relevant government Interaction with Stakeholders authorities and the families of the missing employees. As an international company, we respect the different needs The first priority of Centerra and KGC was to locate the and values of people and their cultures and operate with a missing employees through a search and rescue operations in high level of transparency to ensure stakeholder confidence. cooperation with the Kyrgyz Republic Ministry of Emergencies, The company management on a regular basis conducts which began immediately after the incident and ended on a constructive dialogue with representatives of local January 9, 2020. The decision to end the search was made communities, such as public and youth leaders, local with the agreement of the relatives of the Kumtor missing authorities and representatives of small business. At regular employees. meetings, the company reports on plans, listens to requests We all deeply regret this incident and express our condolences and makes decisions. The company constantly increases to the families, friends and colleagues of the deceased cooperation with all interested parties. employees. The company has been working closely with representatives of the relevant government agencies Investing in Communities to investigate the causes of the rockslide, get a clear understanding of what triggered the rock failure, and develop In this Report, we note some of the activities that we recommendations for the use additional work methods to voluntarily initiated, and their results. Moreover, since 2009 prevent similar tragic incidents in the future. KGC has taken the company contributes 1% of gross revenue to the Issyk-Kul serious steps to improve safety at our world-class enterprise Development Fund. In 2019 our contribution to the Fund was and continues to focus on the issues related to the life and $8.5 million, making the total $75.9 million since 2009. health of its full-time staff, as well as all contractors at all work places.

Geotechnical Safety Ensuring safety at work places and protecting life and health The Kumtor mine ore body and related infrastructure are of employees are the main principles we adhere to in our located under the moving glaciers or subjected to their impact. daily activities. This tragic incident has further strengthened Since the approval of the Kumtor project in 1994, plans for the our belief in the need to enhance safety measures at all work management of ice (necessary for the safe operation of the places of the Company. mine) have become an integral part of the annual mining plans that are subject to approval by the relevant authorities of the

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 5 Environment and Biodiversity Looking Forward We consider a responsible approach to environmental Kumtor successfully implements various initiatives for the management as one of the most important components of purpose of continuous improvement. It is important for our activities. So, in 2019, we spent about $7.5 million for KGC to meet our production targets, requirements of safety, environmental assessment and protection. This includes the environmental and social responsibility. Kumtor mine gold costs of monitoring (both at the mine and in the region) the production in 2020 is expected to be 520,000-560,000 ounces quality of water, air, biodiversity, soil and sediment, radiation or 16.17-17.42 tonnes of gold. We remember the past, but and waste management. think about the future. We continue to improve, and this thought gives us strength and faith in the future. Our objective is to understand the importance of our core values, such as: Life of Mine Win as a Team, Strive for Continuous Improvement, Deliver The total amount of proven and probable gold reserves Results and Be Responsible Miners. at the Kumtor mine as of December 31, 2019 is 3.2 million ounces (43.3 million tonnes at 2.31 g/t). The current mine plan indicates that operations will cease in 2026, however KGC’s Daniel Desjardins, President, exploration program is aimed at extending the life of the mine. Kumtor Gold Company

6 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 7 OPERATIONS OVERVIEW

in the works in the open pit. Before the MINING PROCESS explosion, the mine foreman ensures the Gold is found in the territory of the deposit in the form of finely disseminated pyrite. The withdrawal of employees and heavy vehicles development at the Kumtor mine is performed through open-pit mining, that is, with the use of from the open pit to a safe distance. standard methods of drilling, blasting, loading and transportation in the open pit. LOADING Blasting Waste Rock After clearing roads, the excavators drive Explosives are used to 96% of material mined contains up to the scene of blast. Two types of break up sheets of rock. very little or no gold and goes excavators operate in the mine. The biggest straight to the waste rock dump. one is Hitachi EX3600-6. The excavators Loading load the ore onto the mining trucks. Excavators load the broken up rock into trucks.

Gold Ore Only about 4% of the rock mined is Drilling considered ‘ore’, Core samples are meaning it contains taken to locate enough gold to be gold deposits. processed at the mill at a pro t.

transport Huge trucks haul mined material out of the pit. TRANSPORTATION The Kumtor mine is equipped with a modern mining fleet. The open pit has 99 Caterpillar trucks with a lifting capacity of from 125 tons to 185 tons, 9 drilling rigs and 14 excavators operating regularly. To maintain the infrastructure in the open pit, there is support equipment: 16 crawler dozers and 6 wheeled dozers, as well as 11 graders. All mining equipment is equipped with modern communication modules, a real-time tracking and control system. Workers travel to the open pit in KamAz trucks; known colloquially as bus trucks.

works aimed at determining gold grade but DRILLING the first stage of blasting in the open pit as well. BLASTING

To reach gold bearing ores, it is required to remove the bare rock layer. This process is called stripping. The trucks which transport waste rock unload it on the special dumps. The trucks containing gold bearing ore transport the ore to the large crusher where it is ground to suitable sizes and delivered to Drilling is a very important stage in metal the Mill by conveyor. mining, since geologists should accurately determine the average gold grade in the ore before the commencement of the large scale works at a site. Depending on the results, the Blasting in the open pit breaks apart the further process will determine whether to topmost rock. After assessing where to blast, perform the gold ore production or not. The the zone is closed off. A network of holes drilling rigs operating in the open pit are able are drilled, and explosives connected to a to drill to a depth of up to 12.5 meters. Nearly detonator are placed inside. Meeting safety 200 holes are drilled in the open pit during requirements when firing the charge is of one shift. The drilling process in the mine paramount significance for all employees is not only a part of geological exploration involved

8 102-2/102-7 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 GOLD EXTRACTION The doré bars produced in the Kumtor mine are purchased by Gold is extracted from the ore of the processing factory called the ‘Mill’ Kyrgyzaltyn OJSC for further processing at Kara-Balta refinery, using key stages including grinding, carbon leaching (with cyanide), as stipulated by the Amended and Restated Gold and Silver Sales carbon stripping, electro winning, and smelting. Each of these steps is Agreement concluded by Kumtor Gold Company, Kyrgyzaltyn described further in the diagram below. OJSC and the Government of the Kyrgyz Republic. The exclusive right to sell refined gold and silver both in the Kyrgyz Republic The Mill’s rated throughput is between 17,000 to 19,000 tons of ore and abroad is held by Kyrgyzaltyn alone. per day. The entire production process is automated involving just 16 people per shift to operate the entire Mill. When ore processing is finished, it is smelted into dore bars containing up to 80% gold.

GOLD ORE The 4% of rock mined that MILLING contains a sufficient amount of SAG and Ball Mills use steel balls gold is transported to the Mill for to grind ore to a fine powder processing.

SAG Mill

SLURRY To extract gold from ore, activated carbon and Flotation tanks cyanide solution are added SMELTING to the slurry. Cyanide ions The now solid metal is smelted into dissolve oxidized gold. ‘doré‘ bars, which are bars of semi- Activated carbon adsorbs pure gold - containing up to 80% dissolved gold gold, but also containing various amounts of silver, iron, zinc and copper which make up the remaining 20%. These bars are sold to the gold refinery, Kyrgyzaltyn, where the gold is refined further and subsequently CARBON STRIPPING sold. Gold saturated activated carbon is separated from CARBON the rest of the solution and goes on to another area LEACHING where gold is washed out from the activated carbon ELECTROWINNING As the slurry passes through a series using a special solution consisting of cyanide and An electric current is now passed of agitation tanks, the gold in the ore caustic soda. Activated carbon separated from gold through the gold-containing is dissolved by the cyanide and the can be used again in the process. The goldcontaining solution, which causes the gold to solution goes through electrolytic baths, where gold bind to steel wool located at the resulting gold-cyanide compound deposits on the cathode in a form of powder. The cathode (ˉ) end of the container. binds to the activated carbon in the powder is smelted into dore bars containing up to Doré Bars solution. 80% of gold.

Oxidation Pond Settling Pond Storage Pond pH EFFLUENT A waste substances from the gold processing that won’t be re-used are pumped to the tailings dam. This solution is called ‘effluent‘.

EFFLUENT TREATMENT The effluent from the Mill flows into the effluent pond, from where it is treated at the Effluent Treatment Plant. Here the effluent passes through several ponds each of which remove specific toxins in the solution. Oxidation Pond - cyanide in the effluent is destroyed. Settling Pond - heavy metals and other particulates are bound in solid form and settled out of the solution. Storage Pond - the treated water is stored and tested to make sure it meets Kyrgyz and international standards for maximum allowable concentrations. pH Neutralization - before reintroducing the water to the environment, the pH of the solution is adjusted back to a neutral pH of 7.

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 102-2/102-7 9 ENVIRONMENTAL AND SUSTAINABILITY SNAPSHOT

Actual Target Outcome Pillar 2019 Targets 2020 Targets and Comment on Target

■ All-In Sustaining Cost per Ounce equalled ■ Achieve All-In Sustaining Cost Per Ounce ■ Achieve All-In Sustaining Cost Per Ounce to 666-703 (US$/oz) Project Benefits to 598 (US$/oz) to 750-800 (US$/oz) ■ Produce 535,000-565,000 oz ■ 600,201 ounces of gold produced in 2019 ■ Produce 520,000-560,000 oz

■ TRIFR less than 0.13 ■ Total Reportable Injury Frequency Rate (TRIFR) of 0.21 ■ Actual TRIFR was 0.12 ■ Conduct WS | HS Phase III Refresher Training ■ Implement Work Safe | Home Safe (WS | HS) Phase II ■ Health and Safety WS | HS Phase II completed ■ Improve VFL training program for all KGC supervisors ■ Complete Visible Felt Leadership (VFL) Program for supervisors ■ VFL program implemented for Managers only ■ Commence implementation of Critical Controls ■ Implement Critical Controls Management Standard for all critical risks Management Standard for all critical risks

■ No Reportable Spills > Level 1

■ STP construction completed ■ No Reportable Spills > Level 2 ■ No Reportable Spills > Level 2 ■ ETP upgrade completed Environment ■ Upgrade treatment systems (ETP&STP) ■ Increase ETP capacity ■ The annual average ammonia discharge from the ■ Update Conceptual Closure Plan ■ Implement CCP recommendations ETP was compliant with MAD discharge limits

■ Conceptual Closure Plan (CCP) updated and supplemented

■ Zero days of material business interruptions ■ Zero days of material business interruptions ■ Zero days of material business interruptions Community ■ Stakeholder Engagement Plan and Community ■ Improve grievance mechanism and keep register ■ Approve Stakeholder Engagement Plan and Community Development Plan Development Plan approved of socials obligations

10 102-2/102-7 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 Actual Target Outcome Pillar 2019 Targets 2020 Targets and Comment on Target

■ All-In Sustaining Cost per Ounce equalled ■ Achieve All-In Sustaining Cost Per Ounce ■ Achieve All-In Sustaining Cost Per Ounce to 666-703 (US$/oz) Project Benefits to 598 (US$/oz) to 750-800 (US$/oz) ■ Produce 535,000-565,000 oz ■ 600,201 ounces of gold produced in 2019 ■ Produce 520,000-560,000 oz

■ TRIFR less than 0.13 ■ Total Reportable Injury Frequency Rate (TRIFR) of 0.21 ■ Actual TRIFR was 0.12 ■ Conduct WS | HS Phase III Refresher Training ■ Implement Work Safe | Home Safe (WS | HS) Phase II ■ Health and Safety WS | HS Phase II completed ■ Improve VFL training program for all KGC supervisors ■ Complete Visible Felt Leadership (VFL) Program for supervisors ■ VFL program implemented for Managers only ■ Commence implementation of Critical Controls ■ Implement Critical Controls Management Standard for all critical risks Management Standard for all critical risks

■ No Reportable Spills > Level 1

■ STP construction completed ■ No Reportable Spills > Level 2 ■ No Reportable Spills > Level 2 ■ ETP upgrade completed Environment ■ Upgrade treatment systems (ETP&STP) ■ Increase ETP capacity ■ The annual average ammonia discharge from the ■ Update Conceptual Closure Plan ■ Implement CCP recommendations ETP was compliant with MAD discharge limits

■ Conceptual Closure Plan (CCP) updated and supplemented

■ Zero days of material business interruptions ■ Zero days of material business interruptions ■ Zero days of material business interruptions Community ■ Stakeholder Engagement Plan and Community ■ Improve grievance mechanism and keep register ■ Approve Stakeholder Engagement Plan and Community Development Plan Development Plan approved of socials obligations

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 102-2/102-7 11 BUILDING A TEAM BASED CULTURE OF EXCELLENCE THAT RESPONSIBLY DELIVERS SUSTAINABLE VALUE AND GROWTH.

12 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 We believe that how we conduct business and how all employees act While KCG’s ultimate objective is to deliver value to our shareholders, in fulfilling their job responsibilities are fundamental to achieving our integrity and ethics will be the foundation for everything we do. In vision to build a team based culture of excellence that responsibly endeavouring to achieve our vision we will follow our core values: delivers sustainable value and growth.

BE RESPONSIBLE Meet all government regulations and Minimize the potential for adverse internal governance standards. impacts that may arise from our operations to levels as low as reasonably MINERS Ensure we actively and transparently achievable, taking into account social engage our people and the and economic factors. communities around us.

DELIVER RESULTS Strive for operational excellence, safe Be a leading performer among our production and be accountable for our peers with regard to shareholder results. value, business ethics, workplace safety, environmental protection and community economic development.

Continually improve the management Challenge the status quo, embrace STRIVE FOR of our operations so we may respond change and search for new ways to CONTINUOUS to the economic, environmental and grow our business. social expectations of our stakeholders, IMPROVEMENT including our employees, communities, shareholders, governments and the public.

WIN AS A TEAM Committed and highly engaged. Results focused. Recognize contributions and efforts of each team member.

We believe our strong commitment to our vision and these values will As an international company, we respect the different needs and continue to make Kumtor the employer of choice and the business values of people and their cultures and operate with a high level of partner of choice by governments, state-owned enterprises and special transparency to ensure stakeholder confidence. interest groups in the countries we operate in.

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 13 1. GOVERNANCE

1.1 GOVERNANCE MODEL 1.1 Corporate Governance Structure

CENTERRA`S BOARD OF DIRECTORS

NOMINATING SUSTAINABLE HR AND AND CORPORATE AUDIT COMMITTEE OPERATIONS COMPENSATION RISK COMMITTEE GOVERNANCE COMMITTEE COMMITTEE COMMITTEE

INDEPENDENT INTERNAL AUDITOR PRESIDENT AND CEO

VP, BUSINESS VP, VP, GENERAL VP, CFO VP, COO DEVELOPMENT & HUMAN RESOURSES COUNSEL EXPLORATION

VP, TECHNICAL GENERAL VP, INVESTOR VP, RISK AND SERVICES AND MEETING OF KGC’S RELATIONS INSURANCE PROJECTS SHAREHOLDERS

VP, SECURITY, VP HEALTH AND KGC’S BOARD SUSTAINABILITY AND KUMTOR PRESIDENT SAFETY OF DIRECTORS ENVIRONMENT

DIRECTOR, SUPPLY DIRECTOR, DIRECTOR, DIRECTOR, HR AND DIRECTOR, CHAIN CORPORATE DIRECTOR, FINANCE OPERATIONS ADMINISTRATION ENVIRONMENT MANAGEMENT RELATIONS

KGC operates under the governance and standards set by 1. Code of Ethics for officers and employees; its parent company Centerra, which believes that sound 2. Code of Ethics for directors; and effective corporate governance is essential for all of its activities. We have adopted practices and procedures to 3. International Business Conduct (anti-corruption) ensure that Centerra’s governance principles are followed Policy for all directors, officers and employees. at KGC. We expect directors, management, officers, and employees to conduct themselves in accordance with the highest ethical standards. These are detailed in three key policies:

14 102-12/102-13/102-18 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 KGC develops formal Policies and Procedures for setting operation. Policies stand as control measures performance with internal and external standards, meeting for known or potential risks. However, in today’s legislative responsibilities and promoting the long-term changing risk environment, KGC uses an Enterprise success of the Company. The policies support KGC values Risk Management System to support its business and specifies the framework within which KGC operates in activities and safeguard shareholder value. The risk the following areas: management systems designed to ensure the risks are systematically identified, rigorously assessed, • Operational Health and Safety: KGC ensures prioritized consistent with KGC’s risk appetite and provisions for safe performance and operation effectively managed to eliminate unwanted impacts. at all stages of our activities. KGC recognizes Our external memberships and commitments the protection of the health and safety of its provide an opportunity to learn from, and align our employees, contractors, and the public along with activities with, good international industry practice. responsible environmental management as being Centerra became a supporting Company of the its highest corporate priorities. We are committed Extractive Industries to the safety motto that “no job is so important that we cannot take the time to do it safely.” The EITI is a coalition of governments, companies, civil Key commitments in our policy include:Compliance society, investors, and international organizations. It with applicable laws and regulations of the promotes improved governance in resource-rich countries jurisdictions in which we operate, and generally through the verification and publication of all company accepted international industry practices; payments to governments, as well as government- reported revenues from oil, gas, and mining. Centerra • Providing employees and contractors with a working has played an active role in promoting the EITI in the environment free of uncontrolled hazards Identifying Kyrgyz Republic and Mongolia. Our operations were and eliminating or controlling potential risks to among the first to establish, report, and help improve health and safety of employees, contractors, and EITI infrastructure in their respective countries. For more the public to levels as low as reasonably achievable, information on Centerra’s submissions, visit taking social and economic factors into account; eiti.org/Kyrgyz-Republic • Achieving continual awareness of and improvement Centerra is also a member of the World Gold Council to our overall Health, Safety, and Environment (HSE) (WGC). We have adopted the World Gold Council’s performance. Responsible Gold Mining Principles (“RGMP”) upon their introduction in September 2019. The RGMP is an important ■ Environmental Management: KGC is committed new industry framework that sets out clear expectations to complying with applicable laws, regulations and for consumers, investors and the downstream gold supply standards and minimizing potential environmental chain as to what constitutes responsible gold mining. The impacts due to company operations. KGC has RGMPs consist of 10 umbrella principles and 51 criteria that established an Environmental Management System focus on Environmental, Social and Governance (“ESG”) (EMS) designed to monitor the effects of operations best practices. The RGMPs were developed (through a on the environment and to ensure compliance specific ESG taskforce) through a lengthy engagement with permits and other requirements. The system and consultation process with key industry stakeholders provides for scheduled monitoring, engineering including financiers, investors, non-governmental controls, performance requirements in line with good organizations and civil society. We have been a member international mining practice and local regulations. of the ESG Taskforce since 2018, offering practical, on-the- ■ Compliance: KGC has a comprehensive system ground experience and expertise on a variety of topics, to ensure compliance with laws, regulations and including the development of the external assurance company policies, which is described further in the process. In April 2019, Centerra road tested the then draft section. RGMPs at its Kumtor Mine. Transparency and Reporting: Actual results and In 2020, we begun the implementation roadmap of the company activity is reported regularly through the RGMPs across our operating sites. In 2020, we will focus on parent company Centerra Gold Inc. as well as on remediating areas for improvement identified from the road the company website (www.kumtor.kg). Centerra is test at Kumtor, and undertake readiness reviews and self- a publically traded company with shares listed on assessments at our Öksüt Mine and Mount Milligan Mine. the Toronto Stock Exchange. It is subject to rigorous regulations regarding transparency and reporting. Centerra is a signatory to the International Cyanide Starting in 2017, in compliance with Canadian Management Code for the Manufacture, Transport, and regulation “Extractive Sector Transparency Measures Use of Cyanide in the Production of Gold (Cyanide Code). Act”, Centerra discloses on an annual basis payments This Cyanide Code was developed by a multi-stakeholder made to Governments in its operations. Centerra’s steering committee under the guidance of the United filings can be found at its website (https://www. Nations Environmental Program and the predecessor of the centerragold.com/responsibility/estma-reports). International Council on Mining and Metals. The objective of the Cyanide Code is to improve the management of ■ Operational Excellence: KGC has Standard cyanide used in gold mining and assist in the protection of Operating Procedures that describe the activities human health and the reduction of environmental impacts/ necessary to complete tasks in accordance KGC is certified for transportation of cyanide in accordance with standards and regulations for running the with the International Cyanide Management Code.

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 15 Compliance The Compliance and Projects department (C&P) was established by the Company in 2012 to ensure The C&P Department regularly updates the following compliance with the requirements of the KR legislation, permits issued by different KR ministries and agencies: with international standards of the industrial operation ■ Permit to carry out blasting operations in the pits; and in order to provide continuous and safe operation of the Kumtor mine. ■ Permit to carry out blasting operations from the State Enterprise “Kyrgyzaeronavigation"; The C&P Department has 10 staff members under the supervision of the Director, who reports directly to the ■ Permit to use explosive materials; Director, Operations. The C&P department interacts with ■ License for production and selling of the explosive all KGC structural departments and is guided by acting materials; KR legislation, EEU regulations, generally accepted international standards, and the Agreements for the ■ License to use mineral resources for the purpose to Kumtor Mine. collect fresh ground water from BMY wells; Specialists of the C&P department monitor changes ■ Permit to carry out mining operations within the in the KR legislation and identify the risks that can Concession area; potentially affect the Company’s activities. In accordance ■ Permit to store the weapons used for site security with the KR legislation, the C&P department ensures purposes at the Kumtor mine site; that all required permits and licenses for all Company activities, except for procurement and logistics, are ■ Permits to transport oversize and heavy cargo; obtained in a timely manner and properly maintained. ■ Other activitiesof the C&P department include the Permit to import, purchase, store and use reagents; following: ■ License for the disposal, storage, burial, destruction of toxic waste materials and substances, including ■ Assists other structural departments of the Company radioactive waste; in preparing materials required to conclude service contracts with contractors; ■ Permit to dispose waste into the environment, including toxic waste; ■ Obtains all necessary permits for the design and construction of mine site infrastructure facilities; ■ Permit for emission of waste products from the stationary sources of pollutant into the atmosphere; ■ Obtains approvals of the design documentation and organizes commissioning of newly constructed ■ Permit for the discharge of treated industrial and facilities upon their completion; domestic effluents; ■ Assists design companies in obtaining approvals/ ■ Permit to operate radio sets, radio frequencies to expert opinions for Mine Development Plans/ Designs ensure reliable communication between KGC facilities; and for the standards of pollutants emissions/ ■ Sanitary and Epidemiological expert opinions on the discharges and wastes disposal for the mine site and use of X-Ray devices and equipment with sources of BMY; ionizing radiation. ■ Provides technical assistance during update and/ or KGC has all permits and approvals required by the introduction of new internal documentation for the KR legislation for the Technical Designs for the Company in accordance with requirements of the KR Development of the Central, Sarytor and Southwest legislation and international regulations; and Areas of the Kumtor mine during the entire life of the ■ Organizes calibration of measuring equipment used mine (LOM), as well as approval of the Environmental at the mine site or BMY. Passport and Mine Site Master Plan. The С&P Department ensures uninterrupted operations At the end of 2019 - the beginning of January 2020, of the mine and other KGC facilities through maintaining all other permits and approvals for 2020 were also obtained: regular communication with the authorized state bodies in the field of subsoil, natural resource use, construction, - Mine Plan for the development of the Central Pit; sanitary and epidemiological control, technical - Mine Plan for the development of the pebble supervision, as well as with KR Ministry of Economy, deposits at the Lysyi Creek Alluvial Cone; Ministry of Interior, State Communication Agency under KR Government, Ministry of Emergency and Ministry of - Waste disposal into the environment at the Kumtor Labor and Social Development. mine and BMY; - Emission of waste products from the stationary sources of pollutants into atmosphere at the Kumtor mine and BMY.

16 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 of Directors on such minor significance incidents. Incidents classified as Tiers III through V are reported Audits, Inspections, Claims to the Board of Directors and, in many cases, trigger Our Company is subject to regular audits by the KR external reporting requirements to relevant local and international companies and experts. We are also regulatory agencies. In 2019, 4 non-reportable incidents inspected by relevant national authorities and by the were recorded (Tier I). These included 2 fuel spills and audits retained by Centerra. 2 process water spills onto pipelines. The spills were immediately contained and eliminated, and did not result in any serious consequences. For comparison: 9 Environmental claims non-reportable incidents in 2018 and 15 non-reportable In 2019, KR regulatory authority submitted four claims incidents in 2017. to KGC relating to alleged environmental damages at the Kumtor Mine. Two claims were submitted for compensation of alleged damage caused to land 1.2 Environmental incidents resources, and another two claims were submitted for compensation of alleged damage caused to water and spills resources. KGC resolved all issues related to these claims 2017 2018 2019 through the pre-trial process without admission of liability. Non-reportable spills and environmental incidents 15 9 4 Environmental incidents (Type I) Kumtor maintains a system for reporting environmental and safety-related incidents. It is based on a five-tier classification and reporting a system, which allows the Non-reportable spills and Company to classify environmental incidents and spills environmental incidents 0 0 0 into reportable and non-reportable. This classification (Type II) system takes into account the magnitude of environmental impact and the requirements of national laws and other regulations. Senior environmental staff Reportable spills and 0 1 0 are immediately notified of all incidents; upon receiving incidents (Type III-V) such notice, senior environmental staff classify the incident as per the five tiers above. Tier I and Tier II incidents are considered insignificant in terms of scale and severity of impact; therefore, there are no external reporting requirements. There is no requirement to immediately notify KGC President and Centerra’s Board

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 17 1.2 SUSTAINABILITY MANAGEMENT

While Centerra’s ultimate objective is to deliver value to ■ Continually improve the management practices at our shareholders, we remain committed to the principles our operations, so we may respond to the economic, of sustainable development. In endeavoring to achieve our environmental and social expectations of our strategic objectives we aim to: stakeholders, including our employees, communities, shareholders, government authorities and the public; ■ Be a leader among our peers with regard to business ethics, workplace safety, environmental protection, ■ As an international company, respect the different needs socio-economic development of communities, and and values of people and their cultures, and operate shareholder value; with a high level of transparency to ensure stakeholder confidence. We believe our strong commitment to these ■ Minimize the adverse impact potential of our operations, principles will continue to make Centerra the employer taking into account social and economic factors; and the business partner of choice wherever we operate.

18 102-44/103-2/103-3 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 1.3 RISK MANAGEMENT AND CONTINUOUS IMPROVEMENT

KGC is committed to enhancing and protecting its Also during 2019, KGC initiated the implementation tangible (physical or financial) and intangible (employee, of a critical control management program for 10 key stakeholder or organizational) assets through the Safety risks, introduced the Visible Felt Leadership principles of risk management and continuous Program for supervisors and encouraged effective improvement: communication amongst all staff on health and safety issues. • Advanced, comprehensive identification and The Company also pays special attention to the management of all risks with a proactive approach prevention of occupational diseases of its employees, to ensure the achievement of Company objectives. which reduces the likelihood of illness and workplace Implementation of tools and the allocation of internal injuries. and independent resources to identify, manage, monitor and track risks. ■ Geotechnical issues. The geological and geotechnical characteristics of the Kumtor Mine • Risk management culture including risk informed requires constant vigilance because of the potential decision making incorporated in all operational risk posed to mining operations. Geotechnical issues activities and processes of the Company. can have an impact on gold produced, through delays from revisions in the site Mine Development Risk management in KGC is the process of identifying and Plan, the Waste Dump Placement Plan and the analyzing risks, prioritizing and implementing strategies Dewatering Plans. These may lead to an increase and actions to reduce the negative impact of these risks to in expenditures for unloading, as well as relocation ensure more favorable results. The KGC Risk Management and reconstruction of the existing infrastructure. The and Continuous Improvement team is integrated into Company undertakes extensive efforts to incorporate the day-today activities of the Company alongside appropriate measures in the adjusted plans to department representatives to ensure proactive rather prevent and forecast further ground movement, such than reactive risk management strategies and measures. as a constant monitoring system. The Company also engages independent third party geotechnical consultants to review and recommend improvements to existing risk control measures. ■ Strategic Agreement on Environmental Protection and Investment Promotion of September 11, 2017. At the end of August 2019, all parties of the Strategic Agreement (the Government of the Kyrgyz Republic, Centerra Gold Inc., Kumtor Gold Company CJSC, Kumtor Operating Company CJSC) reached the Second Completion Date (as specified in the Strategic Agreement). As a result, all obligations under the Strategic Agreement entered into force, All identified risks are recorded in the Сompany's risk including settlement and release from liability, as well register and classified/prioritized based on an assessment as obligation of the Kumtor Gold Company to make of each risks impact and likelihood. Appropriate measures contributions to various environmental and social are undertaken in accordance with the risk classification funds of the Government of the Kyrgyz Republic. and are regularly discussed with all levels of management, during various meetings including daily tool-box The management of risk in gold mining involves not meetings, weekly management meetings, monthly and only a thorough approach to addressing threats, but quarterly risk review meetings, and annual meetings as also exploiting the opportunity side of risk. As such part of the budget process. The key risk events dealt with risk management processes are linked and integrated in 2019 related to workplace injuries, improvement of with the continuous improvement activities that are an occupational health and safety, geotechnical conditions important aspect of our daily operations. of the pit and waste dumps as well as compliance with all permits/approvals, including the Strategic Agreement.

■ Prevention of incidents and improvement of occupational health and safety. The management of this risk is an integral part of KGC operations. For many years, the Company has continuously focused on safe working conditions and implemented various initiatives in the field of safety and occupational health improvement. In 2019, Phase III of the Work Safe | Home Safe Safety Leadership Program was delivered to improve the Company's safety culture, building upon the results achieved during this Program’s first two phases.

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 102-46/102-47 19 Continuous improvement is a focus for the Company In 2019, numerous cross functional project teams were as one of the four Corporate Values and it is a vital initiated to implement a variety of risk management and component of continued success. We promote a culture continuous improvement projects aimed at sustainable and philosophy of continuous improvement enabling development and, hopefully, extending the life of the all employees to systematically drive out inefficiencies mine. and embrace advanced innovation opportunities within the Company. KGC strives for operational excellence One of the most successful initiatives was the evaluating every opportunity to improve and enhance all introduction of a more advanced environmentally aspects of its business, while focusing on safe operation, friendly technology to extract gold from tailings. This reduced environmental impact, production optimization, project included the installation of reservoirs before a cost-effective business model and favorable work commencement of the wastewater treatment plan. The environment. activated carbon that was planned to be disposed of will be used to absorb gold, cyanide wad, total cyanide, and nickel ions from the processed water. Moreover, in June 2019, an operation review team including the company's management conducted an annual analysis and review of operating activities to identify potential opportunities to improve the current operating processes. In addition to other programs, the company also continues to implement a number of recommendations on international standards from our insurers.

Continuous Improvement tools and techniques such as brainstorming sessions, cross functional project teams and detailed project plan documentation and status reporting were successfully adopted to positive results and demonstrable achievements.

1.4 MATERIALITY ASSESSMENT

In accordance with the GRI Standards, KGC is required to ■ Data from the KGC community relations online database, identify and report on material issues – defined as issues where we document our engagements with key that have a significant impact on KGC’s business and are stakeholders in the region to record all concerns and important to multiple stakeholder groups. In order to issues raised, as well as record and track grievances and assess which issues are material, we considered a number requests from local communities; of various sources. We based materiality assessment on interviews with Senior management: ■ Internal policies, values, goals and targets; ■ Opinions of Senior Management and Departments ■ Incoming correspondence - to identify key issues raised Heads – via several internal meetings and workshops; by Stakeholders via official requests; ■ Opinions of local communities in Issyk-Kul; ■ Media coverage of the Company. ■ Risks that were rated as High or Extreme as per the KGC As shown on Figure 1.3 overleaf, the issues shaded red were Risk Register; considered material. ■ Relevant legal obligations of the Company;

20 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 United Nations Sustainable ■ Clean Water and Sanitation; Develoment Goals ■ Responsible Consumption and Production; There are 17 Sustainable Development Goals (SDGs) ■ Good Health and Well-being; defined by the international community under the leadership of United Nations in 2015 and which will ■ Decent Work and Economic Growth; be valid until 2030. In order to achieve these goals, ■ Industry, Innovation and Infrastructure; companies are equally accountable as well as NGOs and governments. As a responsible miner, KGC has ■ Partnership for the Goals.. defined SDGs related to our operations and impacted communities. We will continue to support the following SDGs in our operations:

1.3 Materiality matrix

Material Issues

Water Management

Local Communities

Biodiversity Ethical Conduct & Anti-corruption Fostering Local Waste and Hazardous Economies Geotechnical Materials Management Energy & Climate Challenges Occupational Health and Safety Business Development Closure Planning Legal Compliance

Employee Rights Emergency Preparedness Managing Grievance Mechanisms Uncertainty Risks Stakeholder expectations Stakeholder Training and Education

Human Rights

Diversity and Equal Security Practices Opportunities including Gender Supply Chain Cross-cultural Relations Stewardship

Impacts on Kumtor’s business

Legend: Areas of Impact

Environmental responsibility Economic responsibility Health and safety Governance Social responsibility Glaciers and water management

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 102-46/102-47/103-1 21 1.4 List of identified material aspects and boundaries

Impact inside Impact outside Material aspects Relevance organization organization outside organization

Water Management × ×

Minimizing impact of our operations on the environment at the mine site is one of the KGC’s main objectives. We Biodiversity × × comply with the Kyrgyz Republic (KR) and international standards and follow the Good International Industry Waste and Practice (GIIP) in our operations. Hazardous Materials × × Management

KGC complies with KR legislation and is working closely Legal Compliance × × with the KR Government to resolve number of outstanding matters.

According to the Transparency International Corruption Perception Index the KR is ranked high among the Ethical Conduct and × × countries most prone to corruption. KGC has a zero Anti- Corruption tolerance policy for unethical behaviour and has always been committed to fair and transparent operation.

Our economic performance plays significant role in the Fostering Local Kyrgyz economy, providing 9.8% of GDP in 2019, jobs for × Economies more than 3,600 people, supporting local producers and investing into local communities.

Constructive dialogue with the local communities is a Local Communities × × key to our successful cooperation and uninterrupted operations.

Our employees receive regular health checks and support, are provided with high quality personal protective Occupational × equipment, and receive health and safety training to protect Health and Safety themselves and co-workers. Our motto is “No job is so important that we cannot take time to do it safely”.

22 102-46/102-47/103-1 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 1.5 BUSINESS ETHICS

Recent high-profile cases of corruption and bribery culture that encourages and supports staff to act in a in the industry and increasing diligence on the part transparent, ethical, legal and fair way. To highlight the of regulatory agencies means that corruption in importance of our commitments, our employees provide many developing countries has increased the risks formal acknowledgment of awareness on these Policies of noncompliance with the existing anti-corruption and undergo regular in-person and online training on an standards, which can entail significant protection costs annual basis. and cause serious damage to our reputation. This risk exists despite significant efforts undertaken by Centerra The Company has also established internal financial and KGC to ensure that we operate in accordance with all and other controls to (a) prevent corrupt payments applicable regulations and internal policies. According to from being made, (b) detect any such payments that Transparency International Corruption Perception Index, are made, and (c) outline KGC actions if challenged Kyrgyzstan is ranked high among the countries most by enforcement authorities. KGC requires accurate prone to corruption. documentation from all of our partners. KGC maintains records that accurately reflect all transactions — KGC has a zero-tolerance policy for unethical behavior payments, expense reimbursements, gifts, business and has always been committed to fair and transparent entertainment, commission payments, fees and other operation, upported by our Code of Conduct, Code dealings with prospective clients, agents, subsidiaries and of Ethics and International Business Conduct Policy other affiliates. (collectively, the “Policies”). The Code of Conduct provides an ethical framework for employee decisions, Centerra has established a Compliance Hotline to allow actions and behavior. It outlines the principles for employees and other stakeholders to anonymously appropriate conduct and explains the standard of submit in good faith allegations of noncompliance with behavior expected at KGC. Important concepts include: our Policies. • preventing conflicts of interest that may impede an The Compliance Hotline is available in English, Russian, employee from performing the work properly and in Kyrgyz, and the languages of the countries where the best interests of the Company; Centerra operates and can be accessed at www.clearviewconnects.com. • and keeping the company's information confidential. The Hotline is confidential and available 24 hours a day International Business Conduct Policy is anti-corruption and is operated by a third party provider. and regulates KGC's business conduct with Government Officials and prohibits any employee from doing or offering anything of value, including cash, to Government Officials to obtain benefits for KGC or Centerra. These Policies contribute to creating a workplace

Training on International Business Conduct Policy, Code Of Ethics and Anti-Corruption Programs In 2019, Centerra recorded and released an online anti- - Anti-bribery & accounting provisions corruption training video to provide selftraining and - Prohibited & allowed payments raise employee awareness. The training objective is to - Due diligence in third-party relationship raise employee awareness regarding Anti-Corruption legislation and Centerra’s Anti-Corruption programs - Indication of corruption (“Red Flags”) including the International Business Conduct Policy and the Code of Ethics. The video is available to all Kumtor ■ Risks and potential impact to the Company, its employees. employees and partners ■ Compliance Hotline reporting Centerra’s Policies on Code of Ethics & International Business Conduct ■ Annual certification of compliance - Conflict of interest - Confidentiality - Compliance with Laws - Compliance with good disclosure practices

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 23 HONESTY & INTEGRITY HOW WE CONDUCT BUSINESS IS IMPORTANT TO US

Non-compliance with these policies can As Kumtor employees you agreed to result in disciplinary actions, including reprimands, demotions, suspensions and comply with two important policies*, dismissal of employment. Non-compliance with these policices may discussed below. be contrary to applicable laws.

1. CODE OF ETHICS AND 2. INTERNATIONAL BUSINESS GIFT REGISTRY POLICY: CONDUCT POLICY: Conflict of Interest Improper Payments A conflict of interest can occur when an employee has a private Don’t pay, o er, promise any money or thing of value to any Public Official interest in the outcome of a business decision. (Government members, employees of any gov. department, ministry/agency, etc., see the full definition in the Policy) in order to obtain/retain contracts, business or any other advantage for Kumtor. This includes money, gifts, If there is any doubt whether a conflict of interest exists, talk to entertainment, kickbacks, loans, rewards, the provision of facilities or services your supervisor, any member of at less than full cost, and an advantage or benefit of any kind (whether from management, or submit questions corporate funds or assets, or personal or other funds or assets). anonymously and confidentially via the Compliance Hotline (see below). Report immediately, if asked to If you have an actual conflict of make an Improper Payment. interest, disclose it in writing to the No one will su er a demotion or Vice President, Human Resources. penalty for refusing to make an improper payment, even if it results in Don’t make any actions or adverse consequences to Kumtor. decisions that may create a conflict of interest between you and Kumtor.

Confidentiality “Books & Records” Provisions As a Kumtor Company employee, you receive a lot Kumtor is required to make and keep books, records and accounts of information about it. which accurately and fairly reflect the transactions and dispositions of its assets, and to devise and maintain a system of internal controls. Don’t disclose any confidential information about the Company Record transactions in to any member of the public, conformity with accepted whether orally or in writing. methods of financial recording. Don’t speak to the media in the name Record transactions in ways that of Kumtor without permission to do so. permit the preparation of statements in accordance with international financial reporting standards.

Don’t misrepresent, conceal or falsify financial books or records.

HOW TO REPORT IF YOU HAVE A CONCERN?

YOUR SUPERVISOR COMPLIANCE HOTLINE clearview-centerra AUDIT COMMITTEE CHAIR www.clearviewconnects.com (audio only) HR DIRECTOR To Centerra Gold [email protected] Within North America (toll-free): ClearView Connects™ headquarters. In a sealed 1-866-841-8609 P.O. Box 11017 envelope marked “Private CENTERRA GOLD (for concerns Toronto, Ontario and strictly Confidential - beyond Kumtor management) Outside North America: M1E 1N0 Attention: Chair of the [email protected] 1-647-438-1938 Canada Audit Committee of Centerra Gold Inc.” Our Compliance Hotline is available in English,

24 Kyrgyz (on-line only) and Russian.ENVIRONMENT AND SUSTAINABILITY REPORT 2019 24 102-16 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 25 2. ECONOMIC VALUE

2.1 ECONOMIC PERFORMANCE KGC is the largest private sector employer and taxpayer in the Kyrgyz Republic. In 2019 KGC operations accounted for 9.8 % of GDP and 20.8% of aggregate industrial output.

In 2019, payments made within the Kyrgyz Republic Development Fund has started to provide interest-free (including taxes, refining fees and payments for financing of budget-forming business projects aimed goods and services to local suppliers, payments for at creating jobs and developing the Issyk-Kul region. In infrastructure, charitable support, etc.) exceeded $366.9 2019, financial support was provided to entrepreneurs million. from Balykchy, Jeti-Oguz and Ton districts. In 2019, we paid $8.5 million to the Fund. Total payments within the Kyrgyz Republic since 1994 have now exceeded $4.1 billion. Our strategic In addition, the Kyrgyz government, through the state community investment programs in 2019, described owned mining company Kyrgyzaltyn OJSC, remains the in the Social Responsibility section, were $1.4 million. largest single shareholder of Centerra Gold, owner of We continue to contribute 1% of gross revenue to KGC. By the end of 2019, KGC employed 3,033 people, the Issyk-Kul Development Fund for support of social including contractors, with Kyrgyz nationals making and community projects. The Fund is controlled by up more than 99% of full-time staff, which is detailed the government and is under supervision of local further in the People section. authorities with the aim to develop social infrastructure such as schools, clinics and kindergartens in Issyk-Kul Oblast. However, realizing the importance and relevance of implementing sustainable socio-economic projects that will contribute to economic growth, the

2.1 Kumtor’s share 2.2 Kumtor’s Share of 2.3 Gold production of GDP, %* Total Industrial Output (%)* (ounces)

2017 2018 2019 562,749 534,563 600,201 9.7 8.6 9.8 21.1 18.4 20.8

* Kumtor’s macroeconomic impact in the Kyrgyz Republic SOURCE: Kyrgyz Republic National Statistics Committee (preliminary data).

26 102-2/102-7 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 2.4 Direct economic value generated and distributed1 Indicator 2017 2018 2019 Economic value generated Revenues from Gold sales 685,163,279 660,058,489 827,537,641 Other income 2 4,069,740 1,126,089 2,302,370 Economic value distributed

Operating costs (goods and services)3,5 206,804,840 222,831,431 209,404,804

Corporate administration costs - - - Exploration costs 6,090,617 11,302,849 Сapital expenditure 4 78,745,280 60,429,073 54,642,620 Other operating costs 2,469,333 3,097,024 12,155,184 Employee and contractor wages and benefits 117,237,524 117,800,253 120,699,331 Payments to providers of funds (shareholders) 400,000,000 100,000,000 188,000,000 Taxes and royalties 96,729,304 92,988,345 116,416,807

Community donations and investments 1,035,343 2,603,835 1,644,367

Payments to Cancer Support Fund 6 7,000,000

Payments to Nature Development Fund 6 61,100,000 Payments to Social Partnership for Regional Development 5,951,665 Fund 6 Economic value retained (220,788,605) 55,344,000 48,108,760 Notes: 1. Data has been prepared on an accrual basis and non-cash costs have been omitted. 2. Other income includes income from financial investments, sale of assets, and other services. 3. Includes capitalized overburden stripping costs. 4. Excludes capitalized overburden stripping costs. 5. Includes by-product sales (silver). 6. Payments to the Nature Development Fund, Cancer Care Support Center and Social Partnership for Regional Development Fund are made in accordance with the Strategic Agreement signed among the Government of the Kyrgyz Republic, Centerra Gold Inc, Kumtor Gold Company CJSC and Kumtor Operating Company CJSC as of September 11, 2017, and as part of the unilateral obligation of Kumtor Gold Company CJSC as of August 7, 2019.

Consumption of materials Mines are large consumers of supplies and materials We also consume significant quantities of other non- for both the operations and the working community. renewable materials such as fuel, lubricants, grease and Efficient use of materials is essential for both economic explosives. and environmental reasons. The major raw materials consumed include diesel fuel, explosives, lime, reagents and chemicals (including cyanide) used in the milling and leaching processes, and grinding balls to crush the ore. 2.5 Major Consumables (tonnes)

2017 2018 2019 9,719 7,981 11,611 12,174 12,109 11,389 11,759 12,375 124,652 140,262 124,455 32,200 29,789 23,029 10,264

Cement and Reagent and Grinding Balls Diesel Explosives Lime Chemicals (x 1,000 L)

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 102-7 27 2.2 LOCAL PROCUREMENT

One of KGC priorities is to procure goods in the local market. The goods and services should meet strict criteria, which we bear in mind when considering such factors as market stability, quality and price. We are convinced that KGC strategy for local We actively inform potential suppliers of goods and procurement creates significant economic benefits for services, explain our requirements and advise on the Kyrgyzstan at the local, regional and national levels. criteria that should be met in order to get a higher Procuring goods and services in the local market results chance of entering into partnership with KGC. The in new jobs and sources of income, acquisition of Сompany actively participates in seminars and sessions new skills and technologies and helps in establishing organized by the International Business Council, the vital local enterprise networks as well. Thus, local Chamber of Commerce and Industry and other business procurement provides direct possibilities for creating associations to establish direct contacts with suppliers. In common benefits for both KGC and the communities particular, during 2019, representatives of Procurement where the Company operates. About 2/3 of active KGC department participated in the round table "Entry into suppliers are residents of the Kyrgyz Republic. For more force of the Strategic Agreement on Environmental detailed information on local procurement strategy, see Protection and Investment Promotion among the company website in the section “Procurement and Centerra Gold Inc. and the Government of the Kyrgyz logistics” (www.kumtor.kg/en/procurement_logistics/). Republic: strategic importance for the socio-economic development of Kyrgyzstan" in Karakol, the forum To maintain a continuous production, we procure "Eurasian week", presentation sessions for students of more than 11,000 goods and services supplied by higher educational institutions of the Kyrgyz Republic, nearly 600 enterprises operating in the territory of the etc. In November 2019, a large-scale presentation was Kyrgyz Republic. Since 2008, 100% of food products held in Bishkek for suppliers in order to expand the base are procured in the local market. We will discuss our of suppliers and increase the categories of goods and partners - the local producers - below. Throughout 2019, services purchased in the Kyrgyz Republic. KGC continuously engages contracting organizations, the majority of which is based in the Issky- Kul province. This is about 1,100 employees of various trades and qualifications.

2.6 Local procurement in context

Units 2017 2018 2019

Total Payments for Goods and Services USD 266,126,258 317,703,765 285,090,753

Local Payments for Goods and Services USD 60,385,333 81,176,660 70,760,657

Local Payments for Goods and Services % 23 26 25 as % of Total

As always, the largest part in total expenses for goods services, payment for refining services, payment for and services purchased in the Kyrgyz Republic consists food, grinding balls. Most of contracting organizations of payment for services of contractors, payment for are based in the Issyk-Kul region. electricity, communications and utilities, transport

28 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 The main categories of expenses for local purchases

Services of contractors Electricity, communication and utilities Refining services Grinding balls Food and kitchenware Transportation services Consumables, including fuel Consulting/analytical services Rent Other services Equipment and tools Explosive materials PPE Reagents and chemicals Spare parts for machinery/equipment

Making purchases from the local market provides Many of our suppliers highlight that the contract to significant benefits not only for the Company but supply KGC with products is a mark of quality that for the local market as well. This is one of the most makes their production more attractive to other efficient ways for the Company to retain its social customers. It is very important for the Company to license to operate, strengthen relationships with the ensure that all its projects and initiatives that are Kyrgyz Government and improve the efficiency of the currently supported by Kumtor become independent, Company’s supply chain. The primary objective of KGC sustainable and profitable for local budgets and local Procurement department is to increase volumes and communities by the end of LOM in 2026. range of goods and services procured by KGC in the local market, which pursues common benefits for both the Company and the country as a whole. Examples of successful cooperation are enterprises of Issyk-Kul region such as Aiko- Seiko, Ak-Jalga, Sut-Bulak, Issyk- Kul Resource, Avtovneshtrans LLCs, etc.

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 29 30 102-9/103-2/204-1 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 Since the regions have little experience in cooperation We want our suppliers to become more successful and with large-scale projects or modern mining enterprises, keep creating new jobs and possibilities for the local we face a number of difficulties with supplying goods communities. and rendering services like most international mining companies that operate in them. Nevertheless, we Balykchy marshalling yard support potential suppliers in the local market that Balykchy Marshalling Yard (BMY) is a central transport cooperate with us and help them overcome these hub intended for transit storage of materials, which barriers. Because of Kyrgyzstan’s entry into the Eurasian are delivered by train and trucks. The materials are Economic Union, in 2018 a number of goods and delivered to the Kumtor mine by KGC trucks and the services items previously procured in the international vehicles of contracting organizations (as required). markets was replaced with domestic goods. Thus, proportion of goods and services procured in the local ■ On average, 204 rail cars and 58 haul trucks deliver market has significantly increased. goods to BMY each month. Despite the constant effort we make to improve the ■ Every day BMY sends approximately 22 haul trucks local market, there are still many goods and services with goods and materials to the mine. Usually each that are not produced or not available in the Kyrgyz convoy consists of 11 trucks with fuel, 6 trucks with market. Specialist operational equipment and related ammonium nitrate, 1 truck with lime, while the services, large dump trucks, spare parts from the remaining haul trucks transport sectional containers manufacturer, tires, main consumables and chemicals with the equipment and chemicals. may serve as an example. In spite of our being a major consumer of fuels and lubricants, we have to import a ■ Our own fleet includes 46 trucks. Moreover, we major part of them. typically utilize 1-2 trucks per day from contractors. Our total expenditures on goods and services in 2019 ■ The distance from BMY to the mine is 250 km, which made up nearly $285 million. About $71 million of this means that the total distance the Company’s trucks sum was spent on procurement in the territory of the cover each month is 341,000 km. The total volume of Kyrgyz Republic. fuel transported is about 10 million litres each month. Leaving a positive legacy BMY has a fuel farm with a truck filling station, six tanks with a volume of 12,000 m3, two tanks of 100 m3 to fill The current estimated life of the Kumtor mine is until the trucks with fuel oil, and one tank with a volume of 2026. We want our positive impact on the Kyrgyz 200 m3 for gasoline. Moreover, there are warehouses, economy to continue after this. We do everything vehicle repair shops, administrative buildings and one possible to ensure that the local suppliers use our guesthouse as well. Two hundred and one people cooperation to develop their business and diversify work at BMY. The Company’s strategy is to recruit the their customer base. We also set a goal for ourselves – employees who reside in Balykchy and nearby villages. to leave a positive legacy, which in future will become We procure materials and goods in Balykchy, consume a driving force of the extractive sector and related maintenance services and the services required to meet industries. Therefore, we help the entrepreneurs to daily production requirements of BMY and guesthouses. develop their business and not rely on KGC as their sole client.

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 103-2/403-4 31 3. PEOPLE

3.1 WORKPLACE PRACTICES We value each of our employees and their professionalism, and strive to maximize the development of their abilities, talent, and energy in a working environment that allows them to make a personal contribution to the company objectives.

Employment of personnel Employee benefits KGC plans staffing requirements and improves the Our employees enjoy the following benefits: professional level of its employees to ensure effective operation of the enterprise. KGC seeks to hire employees, ■ Funds for health improvement (vouchers to resorts, who meet the established qualification criteria for material assistance for treatment, membership cards production expertise, as well as theoretical and practical to gym halls, etc.); training. We continue to increase the percentage of the ■ Allowances for the celebration of employee Kyrgyz Republic citizens among the Company staff, raising it anniversaries, in connection with retirement, when from 95% in 2011 to 99% by the end of 2019. entering into the first marriage, at the birth/adoption Labour compensation of the child; ■ Home improvement loans; TThe Сompany establishes a system of labour remuneration that allows attracting and retaining highly qualified ■ Vacation pay for health improvement of employees; personnel, as well as ensuring decent payment for ■ Funeral allowances and many other benefits. individual and collective labour of employees. Staff salaries far exceed the average for Kyrgyzstan: in 2019, the minimum wage in the KGC was approximately ten times higher than the minimum wage in Kyrgyzstan. The desire of many local employees to stay with our Сcompany for a long time demonstrates that they are satisfied with their wages.

3.1 Standard National Entry Level 3.2 Proportion of Kyrgyz Wages and Those Paid by Kumtor Citizens as Full-time Staff

Units 2017 2018 2019

Kyrgyz minimum KGS 7.14 10.06 10.58 wage per hour

Kumtor entrylevel KGS 94.62 99.35 109.18 wage per hour Kumtor entrylevel to Kyrgyz

13:1 10:1 10:1 98% 98% 99% minimum wage ratio 2017 2018 2019

32 102-8 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 Leading from Within Program One of the core values of Centerra is: “Win develop the leadership qualities of female staff, as a Team”. To achieve this, we must provide which was created with the active assistance of each member of our team the opportunity to the management and employees of Centerra; contribute to the development of the Сompany especially women. by maximizing employees potential. The program “Leading from within” is the starting point in the The facilitation of this program is carried out journey to unite different, special and valuable through an internal group of women, called personalities. We know that in the mining industry, “Regional Champions”. They were taught how to men represent the majority of the workforce, effectively present the material so that recipients and that women often face certain difficulties. can understand and implement it more easily. Therefore, over the next few years we will work These women represent the various positions and together to eliminate these difficulties, regardless levels, as well as all the regions in which Centerra of whether they are objective or subjective. The operates. They contributed to the development program is a first bold step in this direction. of the program and will act as “champions” in implementing the program within the company. The program was developed by consulting company Ðavis Pier. The program is available In 2019, 71 women of the Company completed the to all female KGC employees, at all levels, with course of the "Leading from Within” Program, 94 participation based on a voluntary basis. women completed the first two modules. In 2020, the Program will be continued at all KGC locations. Centerra strives to ensure gender diversity and equal opportunities for all its employees. The management team understands that improving the quality of work, production indicators, safety, as well as improving the effectiveness of innovation takes place only when each employee feels valued and supported in striving to achieve the best results. That’s what this program was designed for. “Leading from Within” aims to

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 33 3.2 INTERNATIONAL WOMEN IN MINING PROFILE

Nazgul Oskoeva:

“It is not about being a man or woman: it is about being a human being (treat everybody as you want to be treated); it is about dedicating yourself to what you do, acting to add value, continuously improving, knowing where you want to be, never giving up - and it is about choice.”

In her 21 years with Kumtor Gold Company (Centerra What is your experience of being a woman working in Gold Inc.), Nazgul Oskoeva progressed from humble the mining sector? beginnings in Security and Training to a technical role as the Mill Operations Administrator. She then completed I am proud to be part of such wide-scale production. Six Sigma certification and has had opportunities to Proud to be a woman among a male-dominant operation. understand and work in almost all processes of the Proud to be in a team exploring new challenges. Proud operation (Mine, Maintenance, Camp, Exploration, Drill that I achieved where I am currently by merit. With blast) within the Continuous Improvement and Risk my current mind-set, I would not even feel a tiny hint Management departments. She has held the role of that females and males can be differently perceived Procurement and Logistics Manager since 2018. in mining and cannot provide another example of an enterprise where such equality permeates throughout the Please describe your current role. organization. I am so grateful to my colleagues that they challenged But, if I had been asked this question few years ago, me to take my current Procurement and Logistics especially at the beginning of my career, I had the 180° Manager position. There is still such a wide sphere for me opposite opinion. I would agree that, for a woman, it to discover, although I have been in this role for more would be more comfortable to be a teacher or a doctor. I than a year. I have a very different view of this function have to note that, in addition to the concept that “mining compared with what I thought from 20 years of being is a male business”, our Asian culture places women in an end-user. Procurement covers everything horizontally secondary roles and this was more difficult to cope with from manufacture through compliance and shipment early in my career, particularly given my young age at that to the consumer, and vertically through the necessity to time. Yes, I can tell you that I was making the lunch table understand detailed mining processes to supply a correct for those in the office and washing dishes after them! pump or reagent. At the same time, you have to be good psychologist to build bridges between suppliers and end- Moving from one position to another and growing in users, and smooth the path to match all parties’ wants and experience and promotion, I heard a lot of “how can needs. We compare our activity with that of a genie, but, in such a young girl teach and tell us what to do?…how his case, Aladdin had to work out exactly what he wanted: does she dare to ask questions?” and I felt disdain and in our case, end-users often do not know exactly what disparagement from the “adults”. But I had a goal – to they want. So our objective is to be able to understand the learn, know, and become proficient in what I was doing. request, source it from all around the world at adequate I love challenges—and challenges love me. Every new price and quality, arrange optimal ways to deliver it, ensure position I took on was new for the company. I worked that it is compliant, and arrange its availability within a hard to understand it so I that could equally talk to click of a mouse. My role is to make sure the process goes anyone, whether it was a Mine Engineer, Mill Manager, or smoothly and continuously improves with a motivated Maintenance Planner. procurement and logistics team, satisfied end-users, and responsible suppliers forming a compliant base.

34 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 It is not about being a man or woman: it is about being a Do you believe women in mining groups can help to human being (treat everybody as you want to be treated); change the image of the industry and make the sector it is about dedicating yourself to what you do, acting to more attractive to women? add value, continuously improving, knowing where you want to be, never giving up, and it is about choice. You 100%. I am ready to share my experience, prove more, and choose to either give up or continue finding alternative motivate women to be brave, to be self-assured, work on ways: it makes you stronger. With such, all negatives themselves, and be part of the movement that is changing become redundant and your surroundings build your path the world. to the goal. Any advice to young women starting out in their What are you passionate about in your work? careers? What do you wish you’d known when you were 25? Challenges and Changes! I own challenges and changes for the achievements I have won. Development cannot Do not be afraid to go and learn historically male subject happen without ups and downs. I mentioned above that specialties. It is challenging, but you will be surprised I was lucky to be a leading part of teams bringing new that you are easily able to do it. Go and study metallurgy, programs to our company. Unknowns motivate me to mining, engineering. Be brave, do not be shy to express stay late, to work during weekends, to delve in and work your opinion if not in among the crowd, but find aperson on solutions, even if you find that these solutions are not you can trust, share your ideas, ask for tasks, take on what you actually wanted. more challenges. When you are young – you can move rocks! You always have a choice: keep feeling sad and It is surely better to try and regret than not to try and complaining, or look for solutions and open up new regret. opportunities. What challenges have you experienced by virtue of working in an industry that is predominantly male? Do you feel you have had to adapt to ‘fit’ the industry? Again, with my current mind and age (42), if I went to work for any other western mine I would need to adapt to the processes and to the male environment. Here in Asian countries with a conservative culture, you have to adapt to the male-dominant culture; you have to be careful with Source: your words and actions, you have to prove that you merit respect, that you are capable of doing the same job. https://internationalwim.org/nazgul-oskoeva/

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 35 36 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 37 Kumtor Hiring Procedure

The Company has adopted the following procedure for selecting candidates: FIND INTERNAL CANDIDATES We give current employees, who are interested, the chance to apply for an open position first.

When qualified internal candidates cannot be identified, a formal recruitment campaign is held.

EMPlOYMENT OPPORTUNITY ANNOUNCEMENT Advertising for an open position is done through media (newspaper, TV, web). If necessary, position announcements are distributed in local communities. The Sustainable Development department uses all possible channels to notify the community through local administration.

APPLICATION Application forms are available at all Company offices - located in Bishkek, Karakol and Balykchy. Applicants must have the minimum required qualifications, skills, and experience to be considered. Attention!

Employment at Kumtor is not for sale. You should not have to pay INTERVIEW anyone. Please contact 0800 223-23-23 or The top candidates whose skills, education, 0312 90-07-07 if you are approached and experience best fits the position will with a job for money offer. Such offers get interviewed. are illegal and go against Kumtor policy.

SELECTION Based on the selection process results, the most suitable candidate’s applications are provided to the management for approval. Before employment, a successful candidate must undergo a medical examination and training on occupational health and safety.

38 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 3.7 Return to work and retention rates after parental leave (female employees)

Entitled to parental leave Returned from parental leave 7 12 7 10 10 12

2017 2018 2019 2017 2018 2019

In 2019, KGC continued its work on personal development Recruitment process of employees and supervisors as part of the Corporate The Company seeks to ensure consistent and successive Business Training Program, aimed at creating a team spirit, staffing of the business through the recruitment of developing emotional intelligence, time management, individuals in accordance with the required qualifications, conflict management, etc. This training is provided by inclusive of education, academic and practical training, both external suppliers and a business coach to develop working experience, personal qualities, etc. leadership skills. The selection and hiring of staff for the Company is Recognizing the importance of investing into the younger coordinated and administered by the Human Resources generation and training of professionals, KGC implements Department, subject to prior approval from the KGC a Graduate Internship Program and a Summer Student management, in conformance with the principles of Program for the Kyrgyz University students. These efficiency, due diligence, fairness and good corporate programs are aimed at achieving professional goals ethics. Our recruitment process is covered in the by young professionals, identifying and developing infographic on the previous page. the talents of young people, providing a high-quality personnel reserve for the Company, and establishing a Employee training basis for further career growth of interns and summer students. The Regional Scholarship Program plays an The Company is focused on the development of important role in the development of the younger professional knowledge, skills and qualifications of generation, as it provides an opportunity for students employees required to ensure safe and efficient fulfillment completing high schools to get a primary vocational of their duties, as well as on the development of their education. The successful applicants are under full leadership potential. In 2019, 3,845 employees completed scholarship that includes tuition, accommodation, meals various types of training. The total training hours for all and monthly allowance while they attend Technical types of training was 133,026 hours. Compulsory training Vocational School #27 or Technical School #91 in is arranged in three KGC training centers in Bishkek, Bishkek. Graduates of the Technical School #91 acquire Balykchy and Karakol. Compulsory training hours: a specialty of a "Cook/Baker" and after graduation have ■ the opportunity to immediately start working in public Induction briefing and initial safety orientation – 20,681 catering enterprises. Graduates of the Technical School hours # 27 acquire a specialty a "Сar Service Technician". ■ Annual safety refresher sessions – 25,358 hours. Educational plan of the Technical School #27 includes a combined type of training – theoretical training ■ First aid training – 9,256 hours. is conducted at the school, and practical training is The company also retains external trainers that provide conducted in KGC Mega Shop at the Kumtor mine. various types of training. KGC provides employees with the opportunity to participate in various programs, short-term courses, seminars, conferences and other events, both on the territory of the Kyrgyz Republic and abroad. These programs are related to the employee's professional specialization, business and management, technological processes, and development of professional skills. This training would normally be a part of the employees’ individual development plan and a part of the overall KGC succession plan.

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 39 In 2019, KGC continued the work under its Work Safe | Home Safe Leadership Program in the occupational 2019 Central Asia health and safety area. The program goal is to create the HR Brand Award persistent culture of health and safety compliance, to be responsible for personal safety and safety of people In October 2019, KGC was recognized as one of the best around, to win as a Team. STOP Conversations is one of employers in Central Asia, and took a prize among 30 the program’s key tools, which is used when someone is companies in one of the best known and widely reputed committing unsafe acts. In this way, every employee shows award ceremony established for HR professionals of his/her concern for colleagues, family, friends. In 2019, Kyrgyzstan, Kazakhstan and Uzbekistan. KGC has submitted KGC arranged repeated trainings under the Work Safe | a Work Safe | Home Safe program for a nomination. The Home Safe program in the amount of 5,035.5 hours. projects were evaluated in two stages: individual review of projects and panel voting. The expert panel and jury “Leading the Values” trainings was arranged in 2019 for were composed of HR professionals and of CIS largest the KGC senior management staff, which allowed deep companies’ presidents. Winning the Central Asia HR Brand understanding and application of the company values: Award granted us the status of "Best Employer” as well as Win as a Team and Responsible Miners. The number of the opportunity to share experience with a professional training hours under this program totaled to 5,184 hours. community. The following events were arranged, as well: Kumtor Family Day A grand festive event for more than a thousand residents and guests of the Balykchy Town in Issyk-Kul Province was arranged for the first time by KGC in July 2019. The outdoor festive event for adults and children was arranged as a part of the Work Safe | Home Safe Program and the special attention was paid to safety issues. Through a game and entertainment process of the interactive, the participants realized that safety is not just boring rules and restrictions, but a very important aspect of life. The grandeur, fascination and edutainment of the event indicate to unity of the KGC team and its commitment to the principles of the Responsible Miner value.

40 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 3.8 Average hours of training per year per employee by gender, and by employee category (KGC full-time staff)

461 4994 2116 12999 120614 6 264 2415 49

061 999 212 10425 9699 29 26 2425 42

690 90 214 1022 9611 664 2 241 1

4666 4506 415 11666 1294 1400 246 2 41

59 516 612 92094 96 2 2450 2 9

604 4146 54 41 1221 2140 2455 296

In 2019, professional development opportunities for ■ In 2019 Professional Development training of KGC employees included: Supervisors and Managers continued to be a focus ■ Educational financial assistance and leave is available for the company to further develop and enhance to employees to obtain higher education degrees at managerial skills within the leader team. Several local institutes of higher learning, some examples of this are businesses offering supervisory skills development, roles requiring technical diplomas, or where a second effective management techniques and the coaching and higher educational would be beneficial for an employee mentoring process were utilized;. to advance their career in the company;. ■ Team building and coaching/mentoring sessions for ■ Overseas short program learning opportunities in mid-level and senior-level managers providing a venue business, management, employee development and to build comradery and a sense of working together to other role-specific programs are arranged for employees achieve the company’s business plan. These workshops allowing them to increase skills and to perform more and sessions are facilitated by a local Professional effectively in their roles. This training would normally be Development coach under contract with KGC. a part of the employees’ individual development plan Apart from investing in the education and training of and a part of the overall KGC succession plan; current employees, KGC has programs designed for the ■ Overseas technical learning opportunities in skills younger generation – our potential future workers. In development specific to operational departments agreement with Technical School #27 and Technical School designed to equip employees with the technical skills to #91, KGC sponsored Red Crescent First Aid Training for keep up with a changing technological environment; Regional Scholarship recipients.

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 41 After completing the eight-hour training session, each More information about the Scholarship program is participant is awarded a First Aid Certificates that is valid for available in the Social Responsibility Section of the Report. 2 years. The Regional Scholarship Program for students completing high school and keen to pursue a vocational career, has been running since 2000.

Introduction of the STELLAR HSE system On November 1, 2019, a STELLAR HSE Management and Tracking online system, a product of ABCanada Canadian developer was officially introduced to the Kumtor project. Kumtor will use the STELLAR HSE program to: Provide information and track incidents that occur in the course of our production activities; Provide information and track identified risks arising in the course of production activities; Keep records and track leading safety indicators, including results of workplace inspections, safety meetings, and training hours. A key feature of the STELLAR HSE system is assigning responsibility and tracking corrective actions for any incident that is reported, making it easier to identify and resolve issues within a reasonable time frame. In addition, the STELLAR HSE system can produce various statistics, charts and data spreadsheets that will allow KGC to identify safety trends and make improvements where required.

42 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 3.3 OCCUPATIONAL HEALTH AND SAFETY

When mining at the high altitude of 4,000 meters, the major challenges are living and working in a cold climate and reduced oxygen levels. Average annual temperature is -8°C with a minimum as low as -38°C. KGC employees receive regular health checks and support. Doctors from the Occupational Diseases Department They are provided with high quality safety clothing, and and narrow specialists of the National Hospital, heads receive health and safety training to protect themselves of the Sanitary and Epidemiological Station of Issyk-Kul and co-workers. We record and analyze incidents and near region attend the seminars to discuss common issues misses. The Company has an emergency response team and improve the quality of cooperative work. Thus, by that performs regular training exercises. The motto of the holding such seminars that improve the quality of medical Company is: “No job is so important that we cannot take examinations, the medical department contributes to the time to do it safely”. health of employees. KGC maintains medical clinics in Bishkek, at the Balykchy Medical screening and wellness Marshaling Yard and at the mine site, with trained Employees of the Company undergo annual medical medical staff. Doctors with high qualifications regularly examinations in various medical institutions of our undergo training both at local and international advanced republic, where they receive an analysis of their health, on training courses. They provide medical care not only to the basis of which they are issued a permit to work in the the company’s employees, but also to contractors, and at high altitude. To assist with these examinations, KGC individuals/people who have arrived for short-term visits has several contracts with local state hospitals in Bishkek to the mine site. and Issyk-Kul regions. Employees are not allowed to All visitors receive medical checks at the Bishkek clinic to work without the annual medical examination and work verify their fitness to work at the mine. On arrival at site, permit, which is issued for a period of 12 months. In 2019, they receive a further check, and if necessary, treatment is 2,226 employees passed annual medical examinations, given if any symptoms of acute mountain sickness (AMS) 115 passed pre-employment screening, 151 employees arise. were referred for special medical examinations and 50 employees were classified as medically unfit to work at the Our monitoring shows that upper respiratory tract high altitude mine site. infections remain the principal cause of illness and work absence. Every year, preventive health programs are The KGC Medical Department every year conducts partner implemented to motivate our employees to strengthen seminars with doctors from medical institutions engaged their health and improve their overall well-being. Thus, in medical examinations of employees. The purpose of as part of the flu prevention vaccination program, in these meetings is to receive feedback, improve the quality 2019, 400 employees voluntarily underwent influenza of medical examinations, eliminate problems, complaints vaccination. and seek rational proposals. Professionals from the National Center for Cardiology and Therapy are invited to such meetings to advise regional doctors on the tactics of treating altitude sickness, as well as diagnosis and therapy of cardiac patients. 3.9 Medical screening and visits

2,870 2017 Annual medicals 2,633 2018 1,960 2019

334 Pre-employment medicals 162 115

38,709 Total visits 37,607 34,357

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 103-2/403-3 43 Since 2017, a hygienic occupational physician who representatives from the Department of State Sanitary oversees the hygiene of nutrition and work has been and Epidemiological Supervision, a thorough work was recruited in the staff. For every meal, a wide choice of high conducted to identify the list of professions involving quality, freshly prepared food is available, providing for harmful and dangerous substances, as well as production personal and cultural preferences, and entirely sourced factors in the production environment. from the local companies. In cooperation with the regional

Work Safe | Home Safe Leadership Program Centerra seeks to become a world leader in safety and two-day training sessions. The one-day training performance. Centerra has established a corporate session was intended for employees and the two-day culture, in which the value of employees and their session, called Leadership training, was intended contribution to achieving the Company’s goals and for supervisors and managers. Both trainings were objectives is recognized, and seeks to ensure that developed to provide information in order to change everyone returns home safely after every shift. To behavior, provide an emotional element for building do this, all Centerra employees, contractors and a commitment to changes, and conduct a series of other business partners shall take ownership of their interactive group exercises that collect data to ensure personal safety and the safety of those working constant vigilance and feedback from management around them. According to the industrial statistics, groups. This data are then analyzed to manage Centerra is a leader in the field of safety. However, changes, improve safety leadership and culture. to our regret, accidents and serious injuries continue to occur. In 2016, after reviewing the feedback and In 2019, KGC continued its work as part of the the results of discussions at all levels of the Centerra Work Safe | Home Safe Leadership Program. The global operational locations, we concluded that program is aimed at a culture of safety compliance, safety leadership had to be transformed. Centerra responsibility for personal safety and safety of collected and integrated different points of view others, team unity and cohesion. One very important and, using the safety consultant’s recommendations, tool from the program is the “STOP Conversation”, Work Safe | Home Safe program was developed which is used when someone is seen to be doing which became the Centerra’s safety initiative. The something unsafe or in an unsafe situation. In this recently adopted Centerra concepts and values were way, each employee shows their concern for their also included in the Program, the introduction and colleagues, relatives, and friends. implementation of which started in the 2016 autumn at Kumtor. The program phase I consisted of one-

44 103-2/403-3 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 Accident Reporting The Company implements a program that identifies, Our key health and safety statistics are shown in the table records, assesses and controls accidents, risks, hazards and 3.10. We have a Joint Occupational Health, Safety,and near misses. When any employee observes or identifies a Environment Protection Committee, which includes risk, a hazard or a near miss in an operational area, they representatives from various departments, organizational are required to complete an industrial hazards or near miss units, services and contractors employees by various form and submit it to the Occupational Health and Safety locations of the Company. Administrator and Coordinator on risk management. Experts assess the degree of risk and take the required measures to eliminate a source of a hazard or a near miss to reduce the degree of risk and exclude the likelihood of an accident in the future.

3.10 Key health and safety statistics#

Units 2017 2018 2019

Hours worked Hours 5,882,917 6,334,208 6,518,416 Lost Time Injuries (LTIs) Number 1 2 2 Restricted work injuries Number 1 2 0 Medical aid Number 1 2 1 First aid Number 13 9 4 Days lost to injury Days 6,026 107 12,041 No. of LTIs per 200,000 LTI frequency rate* 0.03 0.06 0.09 hours worked No. of LTIs per 200,000 LTI severity rate* 205 3.38 369.45 hours worked Total Reportable Injury Frequency Rate No. of LTIs per 200,000 0.14 0.19 0.12 (TRIFR) hours worked Incidents with Property damage Number 28 16 14 # See Glossary for definitions of key terms. ** The number of lost days due to injuries with lost time incidents (LTI) for 2019 compared to 2018 is significantly higher, because in 2019 there were one lost time injury and one fatal incident involving deaths of two employees. In accordance with international norms, an automatic calculation of 12,000 lost person-days due to a fatal incident (2 deaths, 6,000 days each) and 41 lost persons-days due to lost time injury was made. 3.11 Reportable injury frequency rate: KGC/Centerra vs peer group Kumtor Centerra Peer group

Centerra is a member of the global Mining Safety Round Table group (Peer Group) consisting of other global mining companies that are all mostly based in North America but do business across the globe. Peer group members meet 3 to 4 times a year to exchange and share mine safety best practices as well as research and test innovative technologies for the mining industry. In addition, if/when one of the members is having difficulty with a particular issue, possible solutions are discussed and shared. TRIF

0.14 0.38 0.67 0.19 0.47 0.66 0.12 0.44 0.76 Rates are shared on a bi-yearly benchmarking exercise. 2017 2018 2019

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 45 A special focus for employee awareness continues to Reducing vehicle incidents be on vehicle incidents with collisions and over-turning Work at hazardous production facilities represents the vehicles in the mine pit being considered one of the most risk of incidents and lost time injuries, which can adversely significant risks to our employees. Our goal is to achieve a affect the health of employees, reputation, morale and zero incident rate. The below table shows the key vehicle financial results of the Company. To ensure prevention accident statistics for the past three years, which we post of incidents at KGC, the Work Safe | Home Safe program on information boards around the mine site alongside has been implemented phase by phase. Additional photographs of recent incidents as a regular reminder of programs and measures were implemented for the critical the constant need for care when driving. We also continue controls - light vehicles, heavy duty equipment, stored to improve driver skills and awareness through job energy, working at heights, ground control, hazardous assessments and training. Currently, we are in the process materials, monitoring at the forefront, incorrect behavior, of implementing critical control measures for light vehicles leading indicator analysis. Safety specialists visit other in an effort to reduce the risk of vehicle incidents. Centerra mines to exchange experience. Measures are being implemented to increase the involvement of front line employees in labor protection and safe behavior promotion. As part of the “Visible Felt Leadership” training program, the interaction of managers with employees of other departments and at work areas is being implemented. The idea of safety leadership is being promoted among the line supervisors.

3.12 Vehicle incident reduction program (total number of incidents)

2017 2018 2019

Overall vehicle accidents 14 17 5

High-potential injury risk - light vehicle accidents 1 2 0

In-pit heavy versus light vehicle collisions 0 1 0 Injuries due to vehicle accidents 1 2 0

46 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 Cyanide transport and handling Emergency prevention and Cyanide is an essential chemical for gold extraction, which response must be transported to site. In 1998, there was a cyanide We have a Joint Environment and Occupational Health and spillage incident during transportation from the Balykchy Safety Committee, consisted of 326 representatives from Marshalling Yard to the mine site. An independent management, employees, and contractors from various International Scientific Commission review was carried locations of the Company. Our voluntary emergency out shortly afterwards. The report concluded there were response team consists of three teams at the Kumtor no serious or lasting environmental impacts, including mine and one team at the BMY. The 24-hour mine team no short or long-term damage to Lake Issyk-Kul, and includes a medical doctor, is equipped with an ambulance, there were no reported deaths that could be attributed an emergency car, a fire-fighting equipment and extensive to cyanide exposure. The full report can be downloaded emergency response equipment at the mine site. The BMY from the Kumtor website www.kumtor.kg. In April 2012, team consists of a mobile emergency rescue vehicle, an Kumtor was initially certified by the International Cyanide ambulance, and extensive emergency response equipment. Management Institute (ICMI) for transportation of cyanide We review and update our emergency response plans from the Balykchy Marshalling Yard to the mine site in annually, provide training and conduct periodic drills. Our accordance with the International Cyanide Management mine rescue practices and training programs are aligned Code. The company was re-certified in 2015 and 2018 for with best international industry standards. transportation of cyanide.

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 403-3 47 Emergency Response Training The emergency response team members from Kumtor Additionally, every year, team members are trained in a mine site go through Emergency Response Training specialized Training Center under the Ministry of Emergency sessions and exercises every Sunday, between 2 p.m. and Situations of the Kyrgyz Republic where they receive special 7 p.m. (5 hours) and two times per month at the Balykchy certificates upon successful completion of the training. Marshaling Yard (3 hours). Command-post exercises for threats and emergencies are held at the district level with participation of the Kumtor In 2019, we conducted 52 training sessions at the mine, and emergency response team every third year. Our team 26 sessions at BMY, totalling 260 and 78 hours respectively, also participates in the republican annual competition of as well as special circumstance sessions at the mine site rescuers and most often performs at a very high level. simulating various types of emergencies: cyanide and chemicals spills and dispersal, vehicle accidents, injuries, fires, etc (six sessions at the mine site and five sessions at the BMY).

Our voluntary emergency response team consists of three teams at the Kumtor mine and one team !at BMY

48 403-2 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 49 4. ENVIRONMENT

4.1 ENVIRONMENTAL RESPONSIBILITY

We consider responsible environmental management an important part of our business.

■ Continued studies into the potential risk of Environmental expenditures cyanide impacts on biodiversity around the tailings We operate a full-time Environment Department of management facility - as part of demonstrating 22 people at the mine site. Total annual expenditure compliance with the International Cyanide on environmental management (including capital Management Code; expenditure) was about $7.16 million in 2019 for a ■ range of activities including monitoring, laboratory Continued activities to improve biodiversity analyses, external consultants, waste disposal, emissions conservation and management measures in the treatment, water treatment and environmental impact Sarychat-Eertash State Nature Reserve (SCER); prevention/minimization. ■ Continued research into appropriate rehabilitation techniques for disturbed lands, including expansion Focused environmental of rehabilitation trial plots and development of studies and projects strategies to increase storage life and viability of stripped topsoil; In 2019, we continued a range of focused environmental projects aimed at improving our environmental ■ Continued study of wetland facility to reduce management practices, as well as our understanding concentrations of ammonia and heavy metals in the of the natural ecosystem and our impact of operations waste rock dump run-offs and the ETP discharge; upon it. These studies involved staff of the KGC ■ Continued investigation and implementation Environment Department working with international opportunities to reduce waste management costs and consultants, scientists from the Kyrgyz National the amount of waste landfilled at the mine site; Academy of Sciences, postgraduates and specialists from the Kyrgyz National Agrarian University and other higher ■ Monitoring of glaciers and meteorological conditions educational institutions of the country. on the KGC concession area and in the basins of the Arabel and Uchkol Rivers; These projects included: ■ Controlled lowering of the water level in Petrov Lake ■ Continued monitoring of traffic and dust to prevent a Glacial Lake Outburst Flood (GLOF). concentrations in the Barskoon Valley in accordance with international standards; ■ A variety of fauna surveys and hydro biological researches within the KGC concession area including observations of population of Marco Polo sheep, mountain goats, wolves, and foxes;

50 103-2 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 4. ENVIRONMENT

Total expenditure on environmental management was nearly $7.16 million !in 2019 4.1 KGC environmental protection expenditures and investments (USD)

2017 2018 2019

Waste disposal, emissions treatment 4,593,077 3,483,179 2,692,413 Pollution Prevention & Environmental Management Costs 2,633,312 2,285,734 2,846,332 Environmental Capital Projects 0 0 1,622,050 Overall annual expenditure on environment protection 7,226,389 5,768,913 7,160,796

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 103-2 51 4.2 ENVIRONMENTAL MONITORING

Our monitoring programs follow both national and international standards, and include:

■ Water quality and flow; ■ Waste streams; ■ Effluent quality and flow; ■ Acid rock drainage; ■ Biodiversity; ■ Meteorology. ■ Air quality;

4.2 Description of water quality sampling points Station Location description name

W1.1 Petrov Lake outflow – Kumtor River Head Waters (alpine glacier fed lake – elevated Al, Fe)

W3.4 Lysyi Creek before joining Kumtor River W3.1 Kumtor River after confluence of Lysyi Creek and just before ETP discharge End of tailings spigot – discharge into Tailings Management Facility (TMF) pond. TPX Discharge point moves along dam wall T8.1 Tailings Pond (feed to ETP) T8.4 ETP discharge point into Kumtor River (MAD limits apply) W1.4 Between Kumtor bridge and flume 1km downstream from ETP discharge SDP Treated sewage discharge point into Kumtor River (MAD limits apply) W4.1 Head water of Arabel-Suu diversion ditch (background level) W4.2 Lower Diversion Ditch (LDD) W4.2.1 New Lower Diversion Ditch

W4.3.1 Discharge of Upper Diversion Ditch (UDD) sediment pond to Kumtor River

W2.6.1 Chon-Sarytor Creek from under the Central Valley waste dumps before joining Kumtor River

POR1 Pit water collection sump before discharge to Kichi-Sarytor Creek Sump SWS.3.1 Kichi-Sarytor Creek before joining Kumtor River

SWW1 Meltwater from Sarytor glacier

W1.5.1 Kumtor River, just downstream from Kumtor Concession Area (voluntary compliance point)

W6.1 Arabel-Suu River, 6 km from Kumtor Concession Area (background level)

W1.6 Kumtor River, 17 km from Kumtor Concession Area (before confluence with aragayT River) W1.7 Taragay River, 40 km from Kumtor Concession Area (Kumtor + Kashka-Suu + Maitor Rivers) W1.8 Naryn River in Naryn City, approximately 230 km downstream from Kumtor Concession Area P5.2N, Potable (treated drinking) water - Camp and Mill P5.3 PZ’s Piezometers at the Tailings Dam

52 103-3 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 4.3 Environmental monitoring locations 4.3 Environmental monitoring locations

W4.1

W4.1

A1.3a

A1.3a T8.1 W1.3 T8.4 W3.4 Озеро W3.4 Петрова T8.1 W4.2.1 F T8.4 TPX W1.1 W4.2.1 F W1.1 A1.6 Ледник TPX PZ's W1.4 A1.4 Петрова A1.6 F A1.4 PZ’s W1.4 W4.3.1 SDP SDP P5.2N W4.3.1 W3.1 W3.1 A1.1 P5.2N A1.1 F W2.6.1 A1.2 W2.6.1 Ледник Kumtor River A1.2 Лысый A1.5c P5.3 SWS.3.1 A1.5с P5.3 F SWS.3.1

POR1 POR1 Sump Sump Ледник W1.5.1 SWW1 SWW1 W1.5.1 Давыдова

Ледник Сарытор

Ледник Борду

0 2,500 Ледник Западный metres Scale: 1: 80,000 Борду

Concession Boundary Water Sampling Stations Ground Water Stations

Kumtor River Flow Measuing Point High Volume Air Samples F

Meteorological Stations Water Quality Compliance Points

103-3 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 103-3 53 ENVIRONMENT AND SUSTAINABILITY REPORT 2018 51 was estimated to be 176.98 million m3. These variations Meteorological monitoring are not considered significant in the context of normal We have a mutually beneficial arrangement with the year-to-year fluctuations (see Fig. 4.4). We also monitor agency of Hydrometeorology under the KR Ministry water levels in Petrov Lake, which serves as the fresh water of Emergency Situations. the Kumtor meteorological source for Kumtor mine site. The highest recorded level station is a part of the national weather network, which was 3,733.56 m above sea level in August 2019 (compared provides weather forecasts, important for safe and efficient to 3,733.82 m in 2018) and the lowest was 3,731.52 m operation in the extreme climatic conditions on site. At in January 2019 (compared to 3,731.305 in 2018). As the end of 2016, a new automatic meteorological station the Kumtor River flows downstream after leaving the was built and commissioned, and the old one, installed concession area, it receives additional flow from many in 1999, was dismantled in 2017. The new station collects tributary streams and rivers. At the nearest town Naryn, and exports meteorological data to МР5 database, in located approximately 230 kmdownstream of the mine, accordance with Canadian Atmospheric Environment the flow increases to an estimated 2,340 million m³ per Services protocols. The Saskatchewan research Council in year. Our water use at the mine site has no measurable Canada is contracted to calibrate sensors and ensure they impact on river flows at Naryn since the volume extracted function correctly. each year from Petrov Lake represents just approximately 0.2% of average annual flow at Naryn. The treated effluents discharged back to the Kumtor River also reduce Hydrological flow monitoring the net extracted volume. We track hydrological flows of the main water bodies within the concession area: Kumtor River and its principal Water quality monitoring tributaries (including Chon-Sarytor, Kichi-Sarytor and Lysyi Creeks), Petrov Lake, and the Upper and Lower We follow a comprehensive program of sampling and Diversion Ditches that divert the Arabel River around analyses for water quality based on a network of more the tailings management facility. The Kumtor River flow than 30 stations. The key stations are listed and described generally peaks between May and September each year. in Table 4.2 in this section, with locations shown on an In 2019, a peak of 46.74 m3/s was recorded on August aerial photograph of the concession area (Fig. 4.3 and 10. The total annual flow in the Kumtor River recorded at 4.5). Water quality results and associated discussion are the flume within the concession area was 127.68 million in a separate section of this report: Water Quality and m3 and the flow at the End of Mixing Zone (also called Compliance. W1.5.1), the KGC’s main water quality compliance point,

4.4 Kumtor River flow Monitoring station Units 2017 2018 2019 Annual Flow in Kumtor River at flume (W1.4) m3/year 118,264,372 102,872,002 127,681,497

Annual Flow in Kumtor River at m3/year 180,911,331 146,251,965 176,982,930 compliance point (W1.5.1) Annual Peak instantaneous flow in m3/s 30.67 21.16 46.74 Kumtor River at Flume Peak daily flow in Kumtor River at Flume m3/day 2,649,888 1,828,224 3,355,050 (W1.4)

54 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 4.5 Water quality sampling stations downstream of Kumtor mine

Quality assurance and control Most of our analyses are contracted to a professional duplicate samples, blind samples, and blank samples, as external laboratory, Stewart Assay and Environmental well as calibration and documentation of instruments and Laboratories LLC (SAEL), part of the international ALS procedures. As part of quality control, samples are sent group. SAEL is located in Kara-Balta in the Kyrgyz to expert local and international laboratories including Republic. We also maintain an on-site laboratory to SAEL in Kyrgyz Republic, Saskatchewan Research Council support operational control. We routinely review our (Canada), and Lakefield Research Laboratories (Canada). sampling program and processes, updating them as Lakefield Research specializes in cyanide chemistry and appropriate. Our monitoring program includes a formal analysis. Quality Assurance and Quality Control (QA/ QC) program for collection and handling of samples. This includes

Environmental data management system To minimize the risk of human error and ensure and integrate data quickly and accurately, and report quality control of data, since 2014 we have used a on compliance against environmental standards. comprehensive and integrated Environmental Data Warning and compliance levels have been established Management system, MP-5. This helped to automate in the system to ensure any data, which is outside the data collection process as much as possible. of specified ranges, leads to an alert emailed to Field data is now entered directly using iPads and responsible employees and management. The majority synchronized later in the office. External laboratory of environmental data is now entered directly into reports are directly imported into the database. Some the system, minimizing the risk of human error and environmental monitoring instrumentation (river leading to the removal of most paper templates and and creek flows, weather, etc.) imports data directly spreadsheets from use. into the MP5 database. The system helps to analyze

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 55 4.3 BIODIVERSITY

communities in the Kyrgyz Republic and for the Our commitment Kumtor mine itself. The Tien Shan region also contains We are committed to our obligations to preserve natural significant grasslands, which provide carbon storage biodiversity, reduce negative impact of operations on the and sequestration services. environment during operation of the mine and cooperate with our partners to increase biodiversity. We understand Ecosystem services that in order to successfully address these challenges, we need to consult and work with local, state and Ecosystem services are the benefits that people and international partners. businesses derive from ecosystems. Kumtor mine is remote, with no villages close to its boundaries that could be impacted by operations at the mine site. The nearest Regional context village, Ak-Shyirak, with a population of approximately The Tien Shan mountain range is one of the longest in 120, is located approximately 80 km from the mine in Central Asia, stretching approximately 2,800 km through another valley. Agricultural activities for the Ak-Shyirak mostly the Kyrgyz Republic and China. The peculiarity community, such as crop growing, are very limited due of the region is in its unique biodiversity. Moreover, it to the harsh high altitude climate. Their livelihoods rely is home to a number of endangered animals, including on grazing sheep, goats, and other livestock, in addition snow leopards and the Marco Polo sheep (Argali). to government-funded support. There is also seasonal sheep grazing in the valleys leading to the Kumtor mine The snow leopard is an important cultural symbol in site. While there is little scope for KGC's operations to Central and South Asia and features widely in local negatively impact ecosystem services of Ak-Shyirak, our folklore. Like the snow leopard, an aquatic plant in the support - alongside contributions by other key nature Ranunculus family (Hedysarum kirgizorum), endemic conservation players - for biodiversity conservation (see species of dandelion (Taraxacum syrtorum) and a tulip next page) is expected to generate positive benefits for (Tulipa tetraphylia) are included in the Kyrgyz Red Data the wider region. book. Glacier-fed rivers, including the Kumtor River flowing from Glacier-fed rivers, including the Kumtor River, the Lake Petrov, form part of an important ecosystem which originates from the Petrov Lake, form part service for most of the Kyrgyz population and the Kumtor of an important ecosystem for a broader range of mine itself.

56 103-2 / 304-1 / 304-2 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 Wildlife monitoring on the Tailings Management Facility In 2019, the daily wildlife census monitoring program valuable in the context of the TMF as it presents a broad continued on the KGC Tailings Management Facility measure of potential contact of wildlife with the tailings (TMF). The program was developed to identify and and supernatant water and exposure to their cyanide count all avian and mammalian wildlife on the TMF and content. its immediate surrounds, and confirm that the facility was not having an adverse effect on wildlife. The daily In 2019, four mammal species were recorded on the monitoring is undertaken by trained KGC environmental TMF (Grey Marmot, Red Fox, Wolf and Argali) and 24 personnel, with regular review and supervision by species of birds - predominantly made up of wildfowl a recognized expert in the Kyrgyz Republic. The and waders. monitoring data is also reviewed by an independent internationally recognized ornithologist. Observations Taking into account the extreme weather conditions and around the TMF were completed on 362 days out of low food resources at the high altitude, TMF continues possible 365 days in 2019 - which equates to 99% daily to present a low-visitation and unsuitable habitat for coverage. birds and other wildlife. For most of the year, the TMF pond remains frozen, preventing wildlife exposure to Table 4.6 presents a summary of the daily wildlife the supernatant water. Monitoring indicates that the observations. The information is presented as 'bird- Kumtor TMF system continues to present a relatively days' and 'mammal-days' which provide a comparative low cyanosis risk to avian or other wildlife despite the parameter and quantitative measure of the TMF usage periodic elevated cyanide concentrations in the tailings. or occupancy by wildlife. It is calculated by multiplying The daily wildlife census monitoring program will the number of animals (birds or mammal) seen by continue in 2020. the number of days on which they were seen. This is

4.6 Summary of wildlife observations on the TMF Indicator 2017 2018 2019 No. of days no wildlife was observed 180/362 199/363 223/362

No. of days mammals observed 85/362 69/363 54/362

No. of mammal days 196 181 133 Max. mammal group size seen 11 10 15 No. of days birds observed 127/362 135/363 109/362 No. bird days 1,444 1,444 1,440 Max. bird flock size seen 150 100 120

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 304-1 / 304-2 57 Study of vertebrate animals and birds at the Kumtor mine and adjoining areas During 2019, a study of vertebrate animals and birds of was recorded by the GPS-navigator. 10-zoom binoculars Kumtor and adjoining areas was completed. Objectives and 60-zoom telescope were used to identify to the of the study included the following: assessment species level and count animals. of quantity of animals and birds, identification of species composition of vertebrate animals and birds, When signs of activity of mammals (burrows, tracks, distribution by habitats, characteristics of behaviour excrements, etc.) were found, mammals were identified at the habitat, abundance of species (population to species level. But in many cases, the presence of density), common species, population trends (natural mammals on site was visually observed. The presence dynamics), assessment of impact of the mine's of individual species of animals was recorded by various activity on vertebrate animals and birds, especially on signs of their stay - paw prints on the snow or ground, protected species - rare, endemic, endangered, listed food remnants, flocks or feathers, paths, burrows and in the Red Book species, identification of especially lairs, etc. Also, an aerial census was conducted with the valuable habitats - areas of mass reproduction of use of a quadcopter DJI Inspire 2, X5S. The apparatus specially protected species, foraging areas, rest areas flew around the areas of possible wildlife habitats and of migratory species, migration routes, identification subsequently made photo and video recordings of the of animal species especially sensitive to the mine's identified habitats. operations. Wildlife census was conducted on the pre-determined transects where the location (start and end of transect) 4.7 Map of census route (transect) within the mine

During the entire period of observations in 2019, 10 Ecosystems of the Shinshu University (Japan) and KGC. species of mammals with 1,514 individuals and 43 species of birds with 6,702 individuals were recorded at Aziza is a female mountain sheep (argali), approximately the mine and on adjacent area. 5 years old and weighing 70 kg. Collar frequency is 146.150 MHz. Collar serial number is ID 16675 As part of the mountain sheep (Ovis ammon) biology (Vectronic - Iridium), Iridium, Vectronic Aerospace study, in June 2018, the first satellite collar was put (Germany) www.vectronic-aerospace.com). on the mountain sheep caught at the mine area in cooperation with the Institute of Biology of KR National According to the satellite collar records and regular Academy of Sciences, the Institute of Mountain signals about the location of the mountain sheep, 58 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 the following was recorded. By the time of this report preparation, Aziza covered 957 km, moving at the altitudes from 3,600 to 4,262 m above sea level, most of the time staying at the altitudes from 3,604 to 3,750 m above sea level. On average, Aziza covered 18 km per day, with the average speed 1.6 km/h. It preferred staying on a slope - 3.6% -3.5%, the maximum slope was 15.4%. Generally, it inhabited 152 km of area between the Sarytor Gorge and the Lysyi River on an area of 152 km. The satellite collar records confirm the belief that female mountain sheep prefer staying in a certain territory, since migrations, movements over long distances in high mountains negatively affect the physical condition of animals. Females do not move to large distances to maintain energy reserves in order to bear the fetus. According to scientists, males more often perform pronounced migration processes for the purpose of genetic exchange between populations (with the exception of imbreeding), which confirms their high mortality after rutting.

Map of the movement of the male argali called Aziza On February 22, 2019, the second satellite collar was put on the mountain sheep. The mountain sheep was called Kuldja and marked as M1 "Temirbek", weighing 180 kg. Age is 8 years. Iridium collar frequency, collar serial number is ID 32753 (Vectronic aerospace GmbH, Germany - www. vectronic-aerospace.com). Coordinates of the collar launch: 41.532222 C and 78.090959 V, altitude 3,640 m, “lower mine area". After examining the health status of the mountain sheep and launching the satellite collar, by 12:20 p.m. Kuldja safely left the area.

After the collar was put on the animal, we daily received 12 signals about the location of the mountain sheep. By October 2019, Temirbek covered 400 km, moving at the altitudes between min. 3,600 and max. 4,067 m above sea level. In October 2019, signals began to come from one place, which indicated the death of the animal (perhaps the animal was attacked by a predator, such as leopard or wolf).

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 304-1 / 304-2 59 Map of the movement of the wolf Olga

In addition, as part of the Wolf (Canis Lupus) Behavior Study at the mine area, on February 23, 2019, the third satellite collar was put on the grey wolf in cooperation with KGC employees, the Institute of Biology of KR National Academy of Sciences and the Institute of Mountain Ecosystems of the Shinshu University (Japan). Female wolf, marked as F2 "Olga", weighing 20 kg. Age: 2.5 years. The Globalstar collar frequency, collar serial number ID 19367 (Vectronic Aerospace GmbH, Germany – www. vectronic-aerospace.com). Coordinates of the collar launch: 41.544137 N and 78103478 E, elevation of 3,690 m, trap # 2. After examining the health of the female wolf and launching the satellite collar, the wolf safely left the area at 00:07 a.m. After the collar has been launched, we daily receive 12 signals indicating location of the wolf. Since February 2018, the wolf traveled 1,897 km, moving between the altitutudes of min. 3,500 and max. 3,800 above sea level. This species inhabits exclusively the Kumtor mine concession area. Satellite signal records received from the female wolf confirm research data on the biology of young-aged wolves, which adhere to a certain territory and can not our further observations will show what processes will take compete with wolf species of a higher status. We hope that place in the biology of this individual.

60 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 Map of the movement of the male argali called Temirbek

Industrial development of the Kumtor deposit is an example activity, i.e. animals do not have any disturbance factor. On of one of the most advanced industries where animals are the contrary, in some cases during the hunting season wild strictly protected and not exposed to any anthropogenic animals move from the nearby hunting farms to the mine’s impact. Despite the fact that heavy equipment constantly area where they are in safety. This indicates that the Kumtor operates at the mine’s area, animals, especially ungulates mine operations does not have any adverse impact on and predators, are not afraid of the presence of human wildlife.

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 61 Hydrobiological studies at the Kumtor mine and on the adjacent area In 2019, hydrobiological studies continued in the The total list of aquatic bottom-living invertebrates in water streams and reservoirs at the Kumtor mine the Kumtor river has been expanded by 7 species and area and on the adjacent area, as a result of which including the previously obtained data, a total of 43 the species composition as well as the abundance of species was recorded. zooplankton and zoobenthos were identified. 29 species of zoobenthos were recorded in the A total of 23 species, 15 genera, 12 families, 9 Taragay River, 22 species in the Arabel-Suu River, orders, 6 classes, 3 types were identified in the and 29 species in the Kashka-Suu River. In general, Kumtor River during the entire study period (from zoobenthos composition in the studied watercourses June to September). Numbers of chironomid is represented by widespread species of mountain larvae belonging the subfamily Diamesinae previail rivers and streams. in the bottom-living community. Other aquatic invertebrates such as larvae of stoneflies, mayflies, Among standing water reservoirs, a small lake located simuliids, caddisflies, and fully aquatic organisms, not far from the Biodegradable Waste Processing such as worms, mollusks, ostracods, springtails were Plant was studied in 2019, same as in 2018. In this observed in the samples. Bottom-living invertebrates reservoir, 16 species of zooplankton and 10 species reached its mass development in August and of zoobenthos were recorded. The zoobenthos September. composition in standing reservoirs differs from the river bottom-living community. The most widespread In general, the number of bottom-living invertebrates species is the amphipod (Gammarus sp). Mollusks, in the Kumtor River in 2019 is lower than in 2018. springtails and ostracods are also recorded in the In 2019, some species were not observed in the samples. Larvae of Chironomids are rare. samples, but springtails, mollusks, ostracods that had not been previously encountered in the Kumtor Based on results of the fauna studies in flowing and river were observed. Larvae of caddisflies were also standing water reservoirs, it can be concluded that observed. Poor species composition is explained the species composition of invertebrates is not rich. by moving of adult amphibious insects into the air. This is due to the high mountain extreme conditions. This occurs during the vegetation season (June- In 2019, several fish of Severtsov's Osman (juvenile August), and different species undergo this process at stages) were collected in the Taragay River (August) different periods. This also explains the appearance and in the Arabel-Suu River (September). of new species in the samples, previously not encountered in the Kumtor river. It should be noted that none of the aquatic invertebrates and fish observed in the studied streams and reservoirs are listed in the red book of the Kyrgyz Republic.

62 304-1 / 304-2 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 4.10 Wildlife of the Central and Inner Tien Shan with Conservation Status at the National and International Levels Identified Within the Study Area* Kumtor Common Name Latin Name Kyrgyz Red Book (2006) IUCN Red Book SCER Concession Mammals

Snow leopard Uncia Uncia Critically endangered CR Yes Yes

Brown bear Ursus Arctos Lower risk/least concern LC Near Yes

Mountain sheep Ovis Ammon Near Threatened NT Yes Yes

Pallas's cat Otocolobus Manul Near Threatened NT Near Yes

Stone marten Martes Foina Least Concern LC Yes Yes

Ermine* Mutfela erminea Least Concern LC Yes Yes

Eurasian lynx Lunx lunx Near Threatened LC Near Yes Birds Smee Mergellus albellus Least Concern LC Yes No

Golden eagle Aquila Crysaetos Near Threatened LC Yes (М) Yes

Lammergeyer Gypaetus Barbatus Near Threatened NT Yes Yes

Saker falcon Falco Cherrug Endangered EN Yes Yes

Black stork Ciconia Nigra Near Threatened LC Yes Yes

Whooper swan Cygnus cygnus Least Concern LC Near Yes

Eurasian black Aegypius monachus Near Thtreatened NT Yes Yes Vulture Hymalayan Gyps himalayensis Least Concern NT Yes Yes griffon Deamusel Cranes Anthropoides virgo Near Threatened LC Yes Yes Eastern imperial Aquila heliaca Vulnerable VU М М eagle Eurasian eagle Bubo bubo Least Concern LC Near Yes owl

Ibisbill Ibidorhyncha Vulnerable LC Near Yes

Note: SCER is Sarychat - Eertash Nature Reserve; IUCN is the International Union for Conservation of Nature.

*In 2016, KGC improved the technical equipment of specialists conducting wild animals and birds monitoring near the mine. More powerful optical surveillance equipment was purchased, photo and video equipment updated. Moreover, the frequency and duration of animal observation was increased. This allowed to detect and register six species of animals (rendered in bold) included in the red book and the IUCN list.

# M - marked on a span (seasonal migrant). Endangered (in danger) EN Vulnerable (vulnerable) VU Extinct (disappeared) EX Near Threatened (close to vulnerable) NT Least Concern Extinct in the Wild (extinct in the wild) EW (least threatened) LC Data Deficient (not enough data) DD Critically Endangered species (in critical danger) CR Not Evaluated (threat is not evaluated) NE

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 304-4 63 4.4 ENERGY USE AND CARBON EMISSIONS

the Toktogul Reservoir located on the Naryn River. This Energy consumption means that our specific GHG footprint generated from Our large-scale mining operation is a significant electricity is relatively low. It also means that efforts that consumer of fuel and electricity. Fuel represents over 20 reduce or replace our fuel consumption with grid power percent of our commodity and service-related purchases. offers the greatest value in terms of reducing our GHG However, wherever feasible, we use electricity. The most emissions. We continue to calculate and monitor our energy intensive operation is the Mill, representing greenhouse gas (GHG) emissions, and explore ways to approximately 80 percent of our electricity consumption. reduce them as part of energy conservation measures. The use of fuel to generate electricity at the mine is less Our calculations include our three main sites: the Kumtor than 1%. mine, Balykchy Marshalling Yard, and Bishkek head office. However, the mine represents around 99.6 percent of The Kyrgyz Republic generates more than 85 percent energy use, and the only site using explosives. of its electricity through hydropower. In fact, the Kyrgyz Republic is a leading producer and exporter of We include explosives in our GHG emission calculations hydroelectric energy in the Central Asia region, due to as it was determined to be a significant component of its mountainous terrain and abundant water resources. the total emissions. The major source of the power supplied to KGC is from

4.11 Electricity, Fuel and Explosive Consumption (Mine site, BMY, Bishkek)

Electricity (GJ/yr) Electricity (MWh) Explosives (tonnes/yr) 1,041,539 1,045,065 1,034,446.76 289,316 290,296 287,346.32 32,698 29,789 23,029

2017 2018 2019 2017 2018 2019 2017 2018 2019

Diesel (litres/yr) Petrol (litres/yr) 124,651,982 140,262,495 124,455,262 395,842 466,989 629,365 2017 2018 2019 2017 2018 2019

64 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 GHG emissions and intensity Energy conservation measures Scope 1 (direct) - total GHG emissions in 2019 are lower by We aim to reduce our GHG intensity by reducing our 11.3% compared to 2018. This is due to the suspension of specific energy consumption and by increasing energy mining operations in December. efficiency. We switch from diesel generators to grid electricity, wherever and whenever feasible, for such uses as Scope 2 (indirect) - the total amount of greenhouse gas mine-site lighting, dewatering pumps, and other equipment. emissions in 2019 remained almost unchanged compared This reduces both costs and our GHG footprint. After the to 2018. Mill, our truck fleet is the largest energy consumer. Our program of reducing vehicular-related fuel consumption Accordingly, the GHG emission intensity (an indicator has the benefit of reducing use of energy and carbon- that normalizes greenhouse gas emissions per ounce of intense consumables. For example, we are transitioning to produced gold) at Kumtor, due to a decrease in the total more fuel-efficient engines and have a proactive program amount of GHG emissions, was lower in 2018, but at the to reduce the need for, and occurrence of running engines level of 2017- 2016. on parked vehicles. We have also implemented energy conservation measures ranging from the installation of low wattage, high efficiency lighting systems, better insulation in camp buildings, and encouraging behavior changes. However, such activities do not make a material difference to our GHG footprint due to the fact that these energy uses are very small, compared to major operational energy use, and because electricity already has a low GHG intensity. We continue to explore approaches that may help reduce our energy and GHG intensity but because electricity is already 4.12 GHG Intensity Ratio mostly from renewable sources, the scope is limited. (tonnes CO /ounce Gold) 2 External reporting As in previous years, KGC's carbon footprint is reported through Centerra's participation in the CDP This is an independent international not-for-profit organization that tracks and reports corporate information pertaining to climate change. The data for individual companies is publicly available. 0.65 0.76 0.61

2017 2018 2019

4.13 GHG Emissions

Scope 1

(tonnes CO2e) Scope 2

(tonnes CO2e) 25,279 25,114 25,104 340,525 382,028 338,884

2017 2018 2019

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 65 4.5 AIR EMISSIONS

Road dust, dispersed by moving cars and trucks, is the main source of observed and measurable air emissions along the access road passing through the Barskoon Valley. Concerns have also been raised about mine dust being deposited on nearby glaciers.

Air quality at the mine ■ Total number of days for processing; We constantly monitor the air quality at the mine using six ■ Specific consumption of ANFO and emulsion per 1 3m of large-volume samplers located around the site to measure processed rock; total suspended particles in the air (TSP). In 2019, the TSP concentration at the monitoring stations was below the ■ Size fraction of rock in the waste rock dumps and ore in Kyrgyz 24-hour limit of 500 gg/m3 for industrial zones, the ore stockpiles; except for two exceedances at the station Al.3a. Immediate measures were taken to reduce dust level at this area. ■ Average humidity of rock in the pit; Our analysis of the historical data indicates that in spring, the increase in the level of TSP is generally related to ■ Number and types of pit machinery and equipment; commencement of tailing dam works. Selected TSP samples are also analyzed for cyanide, sulphur, arsenic, nickel, ■ Total volume of consumed diesel fuel and gasoline (lead selenium, zinc, uranium, radium-226, and strontium-90. free), including stationary sources; Consistent with previous results, the 2019 monitoring data, which are presented in the Appendix, demonstrate that the ■ Average operating efficiency of dust-gas collecting units indicators are below the relevant threshold limit values. KGC at the Mill, Crusher, Assay Laboratory, Mobile Batch Plant has maximum allowable emission (MAE) limits for pollutants (instrumental measurement data); emitted into the atmosphere. ■ Average concentration of pollutants in emissions from Actual emissions are compared against the MAE limits the Mill, Crusher, Emulsion Plant, Assay Laboratory, in the table 4.15 and calculated using instrumental instrumental measurement data); measurements of stationary emissions based on a variety of operational data, including: ■ Work hours of emission sources of on-site main and auxiliary facilities; ■ Volume of ore mined and deposited at waste rock dumps; ■ List of areas and volumes of dumped mine rock in waste ■ Annual average consumption of all types of explosives rock dumps and ore stockpiles etc. (ANFO, emulsion);

4.14 High Volume Sampler Air Quality Results KR Industrial Zone Compliance Limit = 500 μg/m3

100% 90% 80% 70% Note: TSP is total suspended 60% particulates. Kyrgyz 24-hour TSP 50% compliance limit for industrial zones 40% is 500 μg/m³.

% of samples 30% Monitoring station locations change 20% occasionally along with changing 10% footprint of the mine. 0% 0–100 100–200 200–300 300–400 400–500 >500 Annual average results are shown for Total Suspended Particluate (TSP) Concentration, μg/m3 locations with more than 6 months of data. A1.2A station was relocated and A1.1 A1.2a A1.2b A1.3a A1.4 A1.5b A1.6 renamed into A1.2b.

66 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 Аccording to the composition and the volume of pollutants Maximum ground level concentration of dust emissions emitted into the atmosphere, the mine site is classified as is 10 times of MAE standard within the mine site. The the first category of hazard. Emissions of non-stationary maximum concentration of the remaining pollutants does sources are calculated according to methodological not exceed 0.3 of the MAE standard. instructions based on actual data (operational factors) of the previous period. As shown in the table 4.15, in 2019 a According to the calculations, the Kumtor mine impact on total of 795.42 tons of pollutants were released into the the atmosphere is estimated as moderately significant. To atmosphere from the mine sources, mainly due to pit reduce this impact, work zones are watered down during operations. The major pollutant is dust (73.42%). Inorganic mining and other operations at the mine, including hauling dust from hauling and loading operations in the Central and loading operations. The stoping faces are also watered Pit is a major contributor to the atmospheric air pollution. down before and after blasting.

4.15 Comparative emission data at the Kumtor mine and MAE (t/year) Pollutant Pollutant MAE Standard 2019 Actual 2019

Dust that contains SiO2 20-70% 689.8808 584.0288 Hydrocyanide (hydrogen cyanide) 0.0026 0.00014 Sodium hydroxide (sodium hydrate) 0.054513 0.05081 Calcium oxide dust (lime) 2.4135 2.0487 Carbon (soot) 2.1175 1.3595 Lead and its inorganic compounds 0.000565 0.000666 Sulfur dioxide 15.02429 12.2179 Welding aerosol 0.5053 0.4408 Manganese oxide 0.0688 0.0598 Hydrofluoride (hydrogen fluoride) 0.0593 0.0518 Hydrocarbon 15.14902 11.29739 Nitrogen dioxide 143.4017 94.4088 Carbon oxide 67.0756 49.1953 Tetrafluorosilane (fluorides) 0.0222 0.0199 Ammonia 1.2834 1.7941 Silicon compounds 0.0222 0.0199 Hydrochloride (hydrogen chloride) 0.0061 0.0224 Nitrogen oxide 0.1154 - Hydrocarbons (as kerosene) 2.2164 - Formaldehyde 0.4563 0.3098 Benzpyrene 0.00004224 0.000032 Ammonium nitrate 1.677 0.0188 Carbon dust 0.0552 0.0522 Suspended solids 0.2418 0.7201 Carbon dioxide 36.424 37.2973 Total 978.27353 795.4149

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 67 Taking into account the fact that the Sarychat-Eertash State ranged from 90 to 514 in August 2019, while the average Reserve is adjacent to the mine site, regular monitoring of number of trucks per day ranged from 50 to 84 in July air is conducted in the northeastern part of the concession 2019. It should be noted that in 2019, several stations area and in the northwestern part of the reserve. and site intended to collect and analyze dust levels along the technological road were vandalized. As a result of the data gap, the traffic data cannot be compared with the Dust level in the Barskoon Valley particulate matter and total dustfall data to determine if Transportation of employees to the workplace, as well as there is a correlation between traffic volume and speed delivery of consumables and other materials is carried out on a technological road that passes through the Barskoon Valley and is served by KGC. The route leads to several settlements, including the village of Ak-Shyirak, summer pastures and hunting farms in high-mountain valleys, Sarychat-Eertash nature reserve, various tourist routes. Local residents, researchers, hunters and tourists also use the road. In order to avoid an increase in the dust level in the Barskoon Valley, we continued watering the road with more than ten water trucks, servicing the road on a daily basis. As in previous years, to determine the total concentration of suspended particles in air (TSP) in the summer of 2019, three large volume samplers were installed. In the Barskoon gorge, there was no and fugitive dust levels. However, the data continue to exceedance of the maximum permissible emission limit show that mine-related vehicles comprise only 25% of of 100 gg/m3. To confirm that company vehicles are not the total traffic volume and that the daily numbers are responsible for emitting all of the dust, a sensor was fairly consistent throughout the year. Most of the vehicles installed in the gorge, which records any vehicles passing (78% of the cars and 57% of the trucks) travelled above at a speed of more than 10 km/h above the speed limit. the posted speed limit of 50 km/hr a shown on Figure In addition, along the entire technological route, dust 4.16.It should be noted that KGC equipped all vehicles counters,instruments for measuring the dust content with GPS-navigators, which allow monitoring the speed in the air, were installed before the mine site, and since rate of KGC vehicles. 2015, the data have been monitored. In 2019, a total of 65,174 vehicles were recorded over the monitoring period: 49,026 (75%) of the vehicles were cars or motorcycles and 16,148 (25%) were trucks. The average number of cars or motocycles per day

4.16 Kumtor Technical Road Percentage of Vehicles in each Speed Class

35%

30%

25%

20%

15%

10%

5%

0% 10-20 21-30 31-40 41-50 51-60 61-70 71-80 81-90 91-250 Speed class (km/hr) Cars Trucks

68 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 According to the survey, conducted by G.A. Lazkov, Doctor that dust and other emissions occurring at the mine have of Biological Sciences, KR National Academy of Sciences, a negative impact on them. However, the mine site is it was determined that the KGC activities do not have a separated from these villages by a mountain range, and the significant impact on the vegetation cover of the Barskoon distance to them exceeds several tens of kilometers. Burning gorge. Uncontrolled grazing and recreational loads have a of rubbish and other uncontrolled air emissions are known much greater impact. to be commonplace in these village areas, and therefore, a much more likely source of emissions. Residents of some villages in the Issyk-Kul region suggest

4.17 Dust monitoring in the Barskoon Valley, μg/м³

Sampling Points Jul 2017 Aug 2017 Jul 2018 Aug 2018 Jul 2019 Aug 2019 (Stations) # 1 31 20 47 77 31 49

# 2 20 46 39 113 31 40

# 3 12 24 39 21 41

Recommended 100 100 100 100 100 100 MAC* Note: #1 sampler was located 50 m to the south of the road upstream of the Kamaz truck monument; #2 sampler was located 100 m to the north of the road, towards the Barskoon River; #3 sampler was located 50 m to the north of the road, opposite to Kamaz truck monument, towards Barskoon River.

* Recommended KR maximum admissible concentration (MAC) standard for populated areas

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 69 4.6 WASTE MANAGEMENT

KGC understands the importance of minimization of negative impact of waste on the environment and operates in compliance with Good International Industry Practice. We are committed to the ongoing improvement of our waste management strategy. Waste Management Strategy Improvement of waste handling KGC developed an integrated waste management strategy practices with input from international consultants. This strategy includes principles such as minimizing the negative impact Reducing the negative impact on the environment and of waste on the environment and effective use of financial the effective use of financial resources related to waste resources spent on labour and purchase of equipment. management are the key priorities in improving our waste KGC achieved the previously set objectives for waste management strategy. As part of the implementation of the management, namely: strategy objectives, ■ 100% recycling of industrial waste; KGC seeks partners who are able to provide waste processing/recycling services, contributing to reduction in ■ Reduction of the volume of solid domestic waste to be waste volumes disposed at site landfills. landfilled; Since 2014, not a single kilogram of industrial waste has ■ 100% composting of food waste from the camp kitchen been disposed on site. Scrap metal, plastic, rubber, wood, on site. paper, waste oil and other waste are removed from the mine and delivered to our local partners to reuse and recycle. In 2019, food waste sorting out was also started at other The re-use of scrap metal in the production of grinding mine's facilities, such as Mega Shop, Mill, Fleet Shop. balls is of particular note. The local company "Vulkan Plus" produces different size steel balls used for ore grinding at Major waste streams the Mill. Three major types of waste (not including waste rock and Domestic and hazardous waste are disposed at two landfills tailings) result from the mine operation: solid domestic commissioned in 2015. These landfills were designed waste, industrial and hazardous waste. Solid domestic and constructed in full compliance with all engineering waste includes food waste, various types of packaging, as and environmental requirements. When designing and well as other out-of-use household items. Industrial waste constructing the landfills, the following factors were taken includes scrap metal, waste tires, plastic, waste oil and fluids, into account: prevention of negative impact on ground and and other low hazard waste, generated in large volumes surface water, minimization of pollutant emissions into the and subject to recycling and further use as a secondary atmosphere, preservation of pasturelands, effect of runoff raw material. Hazardous waste includes packaging and melt water on generation of leachate products and materials, polypropylene bags and wooden boxes used for their safe utilization, and prevention of negative impact on transportation of toxic agents, batteries, mercury lamps, local fauna. The landfills are operated in full compliance medical waste and expired reagents. An important part with the approved design and required environmental, of effective waste management is the accurate reading of sanitary and technical standards. Operation of the landfills waste generation. involves placing and compacting the waste in batches, followed by covering the waste with a 20-30 cm soil layer to prevent access by wild animals. According to the mine closure plan, the landfills will be reclaimed with the rest of the areas onsite.

70 103-2 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 Waste management In compliance with KR environmental legislation, as well producing compost - an organic fertilizer that will be used as high regulations and standards of environmental for restoration of fertile properties of top soil, reclamation responsibility, KGC, as the owner of waste, is committed of disturbed fertile soil areas. Laboratory tests confirmed to ensure safe recycling or utilization of its waste, as well that the chemical-biological composition of the final as continuous improvement of its waste management product - compost - fully complies with the properties of systems/processes/practices in order to minimize negative organic fertilizers. In this way, about 1 ton of food waste is impact on the environment. processed per day. The recyclable types of waste are still sent to processors of plastic, paper and metal what made In 2019, the mine produced 5,412.5 tonnes of industrial it possible to significantly reduce the amount of waste to waste, but for the fifth year in row, KGC recycled 100% of be buried on site and, therefore, extend life of the waste this. Separate collection of all industrial waste at all key landfills, reduce negative impact on the environment, locations on site and at BMY made it possible to eliminate reduce expenses for maintenance of landfills and partially the need for the temporary industrial waste sorting area, solve the problems with wild animals feeding on food which, in turn, resulted in a significant cost-saving due to waste. reduction in labour and equipment previously involved in these areas. Currently, all industrial waste is collected The biodegradable waste processing station underwent separately into corresponding containers and tanks, which all stages of designs, state expertise and obtained a as soon as filled, are removed from the mine avoiding construction permit. It should be noted that this is the first unnecessary loading/ unloading and sorting operations. such project in Kyrgyzstan demonstrating a high level of environmental responsibility at KGC. In 2019, the mine produced 580.9 tonnes of solid domestic waste. In 2016, KGC committed to reduce volume of solid In 2019, the mine produced 407.5 tons of hazardous waste, domestic waste to be buried in the Kumtor mine landfill of which 14.6 tons were shipped off site for recycling by by 50%, which is currently being implemented. The main a specialized company. The volume of hazardous waste purpose of the program is to reduce negative impact of shipped off for recycling was significantly lower than the waste on the environment and extend the life of the Solid 2018 volume because oily rags were classified as a lower Domestic Landfill. Such reduction in volumes of solid hazard class and its volume was included in the total domestic waste has become possible through introduction volume of industrial waste. Hazardous waste includes of separate collection and further recycling of this waste. various packaging materials, used for transportation and storage of toxic chemicals, car batteries and other Domestic waste can be segregated into three main types of batteries, mercury-containing lamps, as well as categories: 1) Biodegradable waste - food; 2) Recyclable soil contaminated with hazardous materials. Chemicals items - plastic, paper, glass, metal; 3) Non-recyclable items - packaging materials are buried on site in the authorized multilayer packaging, domestic waste, etc. At the same time, Hazardous Waste Landfill. biodegradable and recyclable waste can be relatively easily recycled and reused. Thus, taking into account composition Car batteries are collected separately and shipped off of solid domestic waste, it is easy to see that if separate site for recycling. In addition, collection of other types collection of waste is organized, about 75% of waste volume of batteries was started - AA batteries, typically used in can be recycled and reused, and only 25% can not be communications and computer equipment. As this type recycled. It means that volume of solid domestic waste to of hazardous waste accumulates, it is shipped off site to be landfilled can be reduced 3-4 times. Bishkek for safe disposal by a specialized company. In 2017, with assistance of local companies, KGC started the As part of implementation of the strategy to optimize waste process of utilization of oily rags and big bags and these management system, as well as to reduce volume of waste works were continued in 2019. In general, KGC significantly to be buried at the Kumtor mine, in 2017, KGC introduced improved its waste management practices, adhering to a partial separate collection and recycling of solid domestic the main priorities for reduction of negative impact on waste at the mine. the environment, effective use of financial resources and introduction of the best waste management practices. In 2017, a biodegradable waste processing station, or compost unit, was designed and constructed. In this station, food waste is processed by aerobic decomposition

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 103-2 71 4.18 Waste generation 2019 (tonnes) Generated tonnes Disposal method

Industrial waste Metal 3,088.902 100% Recycled Paper 125.195 100% Recycled Wood 302.410 100% Recycled Plastic 213.199 100% Recycled Rubber products 47.894 100% Recycled Oily rags 132.790 100% Recycled Used oil and blends 1,502.060 100% Recycled

Total 5,412.450 Hazaradous waste Packaging 392.912 Landfilled Batteries 12.520 100% Recycled* Mercury lamps 2.039 100% Recycled Total 407.5 Tires Waste tires 1,079.0 100% Recycled

Note: 10 tons of used batteries, including those remained from previous years, are temporarily stored at the mine. In 2019, 1,079 tons of used tires were generated, 1,309,006 tons were transferred for recycling. 280 tons of used batteries, including those remained from previous years, are temporarily stored at the mine.

4.19 Waste produced at Kumtor Mine Site (tonnes)

Industrial waste Hazardous waste Household waste* Waste tires 10,052 6,751.2 5,412.5 545 459.7 407.5 817.9 855.6 580.9 947.8 1,176.3 1,079

2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019

* In 2018, volume of produced domestic waste increased due to the increased number of employees (Fig. 3.5).

72 306-2 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 4.7 UNPROCESSED WASTE ROCK As typical for most open pit mining projects, KGC has to remove large volumes of unprocessed (waste) rock and other materials in order to safely access the ore.

The waste rock is deposited in agreed designated locations and is routinely monitored for its impact on the environment.

Waste rock dumps In accordance with the KR Law on Subsoil Protection, as well as industrial safety standards, waste rock dumps shall have sufficient storage capacity, and be located at a minimum distance from a mining cutback. Mined waste rock shall not be placed in areas with mineralization, hinder mining operations in the pit and shall be formed according to the safety requirements. In addition, dumping methods and equipment shall ensure uninterrupted waste rock dumping in the required volume per time unit, and comply with limitations on Acid rock drainage analysis dump capacity whilst maintaining dumping costs at the Acid rock drainage (ARD) describes contaminated water lowest level and labour/equipment productivities at the that can be generated from water contacting the sulfur highest level. Modeling and assessment of waste dump containing waste rock. The issue of acid formation is stability are performed by specialists of the Research and directly related to both mining and post closure period. Design Laboratory LLC of Geotechnical Objects Stability KGC has routinely monitored for ARD risk since the initial based on KGC's monitoring data. environmental impact assessment, taking into account the ore body, waste rock and tailings. A number of Waste rock movement independent assessments by international consultants concluded the ARD risk from KGC is low due to the high KGC continues to monitor potential deformations of soil carbonate content in dumps, which neutralizes acidity. A and ice throughout the mine, including timely relocation long-term ARD assessment is a part of the mine closure of ice and assessment of waste dumps condition to planning. ensure safe mining operations and timely relocation of the affected infrastructure. In 2019, the company continued to implement special measures aimed at reducing the rate of dump deformations through a more even distribution of loads, construction of water drainage systems, and introduction of an automatic monitoring system.

4.20 Key production statistics of Mine Operations, million tonnes

2017 2018 2019 9.2 6.4 4.4 156.4 141.4 181.2 180.3 172.3 171.6

Ore(Mining Ore Mined Waste rock Volume)

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 G4-MM3 73 4.8 TAILINGS MANAGEMENT

Tailings are liquid and solid materials, also called slurry, that remain after extraction of economically beneficial metals and minerals from crushed and processed ore. Tailings of the Kumtor mine are transported through a the existing buttress downstream of the dam is also 6.7-kilometer slurry pipeline from the Mill to the tailing expanded, which helps to increase the strength and management facility (TMF), where they are deposited, stability of the structure. Some movement of the KGC settled, and stored. The liquid component is treated before dam was first observed in 1999, and since then, Kyrgyz discharge and the solid component retained in the tailing specialist organizations and international engineering pond until further reclamation and mine closure activities. experts have been consulted on management and The Kumtor TMF consists of two slurry pipelines (main mitigation. In response, a shear key and buttress were tailings line and a spare one), a tailings dam supported constructed along the downstream toe to reduce, and by a buttress and a shear key, monitoring equipment and eventually eliminate, the movement of the dam. Since instruments, an effluent treatment plant, and two diversion 2006, a tendency of horizontal displacement velocity ditches to direct surface water around the TMF. In addition reduction has been observed. A branched network to general tailings management, two important aspects are of sensitive instrumentation is installed to detect and monitored and controlled: (i) cyanide containing solutions, record any movements in the dam structure. In 2019, which are securely contained within the TMF, and (ii) dam operations on the buttress construction above the stability. These issues are discussed below. shear key were carried out at the dam lower edge for further expansion of the dam from the downstream toe. Compliance with timelines for periodic topping Cyanide residue management of the tailings dam, construction of the shear key and The concentration of cyanide in the TMF is routinely the buttress will ensure increase of the dam overall monitored. In the tailings pond there is a natural stability. To implement the planned activities ensuring disintegration of the chemical, or its decomposition, the dam stability at 3,674.0 m crest level, a sequence of as a result of a chemical reaction and exposure to construction operations has been developed, starting ultraviolet radiation. The liquid component is pumped from 2017 to 2020. Dam construction operations and and treated by the effluent treatment plant (ETP) the technological process of tailings impounding are to reduce cyanide and metals for safe discharge to carried out in accordance with ecological, economic and the environment. More discussion of the cyanide technical standards and fulfillment of safety conditions. concentrations discharged to the external environment is provided in the Water Quality and Compliance Tailings balance section. Accurate knowledge of what enters and leaves the TMF and the volumes of liquid and solids it contains, are Geotechnical monitoring and an important part of safe management. We survey the extent and depth of the pond, and track the volume of stabilization tailings entering the TMF and volume of water leaving The dam is constructed and managed to safely it after treatment at the ETP and by evaporation from retain tailings. The dam is 3,050 meters long with a the pond surface. Tailings slurry, 49% consisting of maximum height under its crest of 40.5 meters at an solids, is continuously added to the TMF throughout elevation of 3,670.5 meters above sea level. The dam Mill operations (most of the year). Water treatment is constructed primarily of dense granular fill made of and removal (via the ETP) occurs only during summer the local ground. The dam surface is covered with an months when the pond and Kumtor River is not frozen HDPE liner (a strong impermeable synthetic material) - usually May to October. Therefore, TMF water volume from the upstream slope to the toe of the dam, and peaks in spring and reaches its lowest level at the start then 100 meters into the tailings pond. This liner of winter. extends into the permafrost to minimize seepage through the dam. The height of the dam is increased over time to ensure sufficient volume for tailings storage. Along with the increase of the pond volume,

74 G4-MM3 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 4.21 Tailings dam monitoring instrumentation (number of instruments)

Type Purpose 2017 2018 2019

Inclinometers Measure horizontal displacement 50 50 50

Settling plates Identify dam base settlement 32 37 37

Piezometers Measure water levels in dam body and base 33 38 38

Thermistors Dam body and base temperature 48 53 53

4.22 Key Characteristics of Kumtor’s Tailings Management Facility (TMF)

Units 2017 2018 2019

Tailings discharged to Tailings Pond mil. m3 8.36 8.68 8.55 Net tailings remaining in Tailings Pond per year mil. m3 4.98 4.99 4.00 Total cumulative tailings in Tailings Pond at year end mil. m3 83.29 88.28 92.28 Total free water in Tailings Pond at year end mil. m3 6.55 7.32 7.34 Elevation of Tailings Dam Wall crest masl 3,670.5 3,670.5 3,670.5 Peak water level in Tailings Pond during year masl 3,664.86 3,665.95 3,666.90 Minimum water freeboard m 5.66 4.55 3.60 (dam crest level - peak water level)

4.23 Water balance in TMF, м³

2017 2018 2019

Free water at start of year (January 1) 5,730,850 6,546,038 7,321,113 Water added in tailings 6,174,299 6,465,724 6,457,637 Net precipitation/runoff less evaporation 470,340 816,738 1,344,018 Water remaining in tailings voids -1,861,268 -1,884,923 -1,778,539 Water discharged from Tailings Pond -5,026,168 -4,622,464 -6,000,482 to Effluent Treatment Plant Adjustment based on bathymetric survey 1,057,985 0 0 Free water at the end of year (December 31) 6,546,038 7,321,113 7,343,746

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 G4-MM3 75 5. GLACIERS AND WATER MANAGEMENT

5.1 WATER USE AND TREATMENT We use water for operational activities (mostly in the Mill), as well as for domestic use (drinking and sanitation) in the mine camp, offices, and workshops. Water is removed from the mine pit in order to ensure safe and stable operations.

Our main water management 7.99 million m3 of recycled water. The use of pit water, which reduces our demand on water from Petrov Lake, responsibilities are: has increased from zero in 2011 to 1.49 million m3 in ■ Providing safe drinking water for our employees; 2019. In 2020, we plan to increase the amount of water collected from the pit for the Mill processes. In 2019, ■ Removing water and moving ice from the open pit to the total amount of water used at the Mill decreased ensure safe access to ore, and stable and safe working approximately by 0.4 million m3, but the total amount of conditions; fresh water sourced from Petrov Lake actually increased ■ Ensuring water returned to the natural environment is in 2019 compared to 2018. safe and meets specified quality criteria; Drinking water ■ Managing run-off to reduce sediment load entering local creeks and rivers. We also use treated water from Petrov Lake for domestic uses (drinking and sanitary) in the mine camp, the Mill, An information brochure describing Water Management and other facilities. Domestic water use in 2019 was at KGC can be downloaded from our website at: about 0.2 million m3, representing just 3.58 % of the www.kumtor.kg/en/environment-protection/ water- freshwater we collect from Petrov Lake. Drinking water management. quality is monitored to ensure its safety and compliance. Water sources Pit dewatering We have two primary sources of water at the mine site. We collect and discharge large quantities of water as Most of the water we use is extracted from Petrov Lake. a necessary part of our pit-dewatering program to We also pump large volumes of water from the open keep the pit stable and safe. Some dewatering occurs mine pit to ensure its safe and stable operation, some throughout the year, but most occurs during the of which we use at the Mill, thus reducing our demand summer period when large quantities of glacial melt from Petrov Lake. In 2019 we extracted approximately water collects in the open pit. The majority of the pit 5.41 million m3 of water from Petrov Lake, which is more water is discharged to the environment. than in the previous year (5.17 million m3). Operational water use Our main use of water is as process water in the Mill, for crushing the ore and processing it to produce gold.

In 2019, the Mill used 4.95 million m3 from Petrov Lake, 1.49 million m3 collected from the mine pit and

76 103-2 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 5.1 Water Flows at Petrov Lake Formed by the meltwater of Petrov 3 Glacier, the lake is the source of drinking Kumtor Mine, m m * water at the mine and also supplies most of the water used for gold processing at the Mill. Pit To ensure safe working conditions, meltwater must be pumped out of the pit. Some of this water is used for gold processing at the Mill. dust supressio r for n ate w - 0.04

g n - i - 4.9 s 5 5 s . . e 4 1 c water fo + ro + r p ld gold processing go water for

- 0.95 on wa essi Mill ter for dust supr The water used for gold processing at the Mill is Tailing Dam taken from Petrov Lake and the Pit.

-0 . r 2 e at Camp g w Water from Petrov inkin .5 dr lake is used for 11 + ek drinking, cleaning, re i C and other utilities. sy Ly Effluent Treatment Plant (ETP) .9 er +5 at Sewage d w Treatment te .13 Plant (STP) a +0 r +2 e ate tr d w ate tre 127.7 8 (flume) .0 0.3 +2 +1 + .24 tor Lowe ry r Dive a rsio -S Ditch n on Ch .5 +18. 7 4 2 Pit + tor + Sary Uppe i- r Dive h rsio ic Ditch n K r ive

r R

e yn 3 v r 4

i Na 2,3

R

r o t For comparison If the flow of the Naryn River was

m represented by a bathtub full of water, the u amount used up by Kumtor would be less K than a small glass of water. This means that, as a percentage, Kumtor uses up less than 0. % of all the water in the Naryn River. End of Mixing Zone 103-2/303-2 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 17703-2303-2 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 5.2 Water usage at Kumtor Mine Site Units 2017 2018 2019 Sources of Water Total Water Extracted from Petrov Lake mil. m³ 5.21 5.17 5.41 Pit water pumped to the Mill mil. m³ 1.14 1.54 1.49 Pit water pumped to the environment mil. m³ 29.24 25.17 27.11

Water used for Domestic Purposes Water Used for camp domestic purposes mil. m³ 0.13 0.14 0.15 Water Used for Mill domestic purposes mil. m³ 0.02 0.02 0.02 Water Used for lower zone domestic purposes 0.03

Water used for Process/Mill Raw water used at Mill (from Petrov Lake) mil. m³ 5.03 4.91 4.95 Total water used at Mill (Petrov Lake + Pit water) mil. m³ 6.17 6.45 6.44 Water internally recycled at Mill mil. m³ 6.19 8.06 7.99 Ore Feed to Mill mln tonnes 6.25 6.33 5.97 Raw Water Intensity Ratio litres/tonne 805 776 829

Process water fro drilling exploration operations 0.23 (Petrov Lake)

Water used for Dust Suppression Water used for dust suppression (from Petrov Lake) mil. m³ 0.05 0.11 0.04 Water used for dust suppression (from Pit water) mil. m³ 0.77 0.75 0.95

Wastewater Discharged to Environment Treated wastewater discharged from ETP mil. m³ 4.75 4.58 5.99 Treated wastewater discharged from STP mil. m³ 0.10 0.13 0.13 Net water usage mil. m³ 0.36 0.46 -0.72

78 303-1/303-2/303-3/306-1 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 Sewage treatment Water use intensity Sewage wastewater is treated at the sewage treatment Extraction of water from Petrov Lake for the mine's plant (STP) before discharge to the environment. This needs has no measurable impact on average annual uses standard processes of biological treatment and lake water level. During the year, the water level disinfection (chlorination). The biological treatment naturally fluctuates within 2 meters. improves the water quality by removing the 'oxygen demand' of organic matters, which would otherwise Total water extraction from Petrov Lake of 5.41 million m3 use up oxygen in the river and reduce its quality. in 2019 represents approximately 4.91% of its natural Chlorination eliminates potentially harmful bacteria. outflow to Kumtor River. We then returned 6.13 million Although challenging to operate in extreme conditions m3 as treated wastewater (STP plus ETP). The difference - high altitude with low oxygen and harsh weather between the total water extraction from Petrov Lake in conditions, treatment is achieved successfully through 2019 and the total water returned to the environment careful calculations and management. During freezing as treated wastewater is explained by the accumulation winter conditions, treated sewage is stored in a holding of water in the tailings pond in previous periods. pond prior to gradual discharge during summer. In 3 2019, approximately 0.13 million m3 of sewage was In 2019, we pumped a total of 29.6 million m of water treated and discharged. from the pit, including surface and glacier melt water. Of this, 1.49 million m3 was used in the Mill, 0.95 million Industrial wastewater treatment m3 for watering the pit roads and the remaining volume (27.11 million m3) discharged to the environment. Industrial wastewater containing residual cyanide is a component of tailings slurry discharged by gravity flow The gold recovery technology used at the Kumtor from the Mill to the tailings management facility (TMF). mine and severe climatic conditions limit our ability to increase our water use intensity by recycling effluents The liquid component of tailings (approximately 51% of from our tailings pond. Studies have shown that the slurry by weight) is pumped to and treated at the even low levels of cyanide in the tailings pond would Effluent Treatment Plant (ETP), for compliance with the adversely affect our gold recovery process. All year established standards - Maximum Allowable Discharge round operation of the Effluent Treatment Plant is (MAD), before discharge to Kumtor River. Due to the impossible because of climatic conditions. Since July freezing winter conditions, the treatment and discharge 2012, we have been using water from pit dewatering in of wastewater is restricted only to the warmer season, the Mill. As a result, we are seeing a decreasing trend typically from May to October. in the water use intensity of our operation, reflecting the positive impact of in-mill recycling and using an The main concerns of community regarding wastewater increasing proportion of water from pit dewatering. from the Kumtor mine are related to cyanide, a highly chemical used routinely in the processing of ore to recover gold. Managing run-off In 2019, 8.55 million m3 of tailings were produced We continue to improve the management of surface and discharged into the tailings pond. The tailings run-off (precipitation and ice melt) to reduce the containing remaining concentrations of cyanide and risk and prevent possible contamination. Pumps are other chemicals can do harm to the environment if installed at the toes of Davydov, Lysiy and Sarytor discharged without treatment.The solid component glaciers and pipeline system was constructed around is retained in the TMF, while the majority of liquid the waste rock dumps. Melt water is diverted to Kichi component is pumped to and treated at the ETP Sarytor and Lysyi Creeks. We also constructed a number to reduce concentrations or remove elevated of settlement ponds for settlement of solid particles. contaminants. We use the patented INCO treatment Flume stations with automatic calculation of water flow process, and operate one of the largest cyanide and data import directly to the MP-5 database were treatment plants outside of North America. constructed at the Kumtor River and Lysyi Creek.

In 2019, approximately 5.99 million m3 of industrial wastewater from the tailings ponds was treated and discharged.

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 303-3/306-1 79 5.2 WATER QUALITY AND COMPLIANCE

A review of results from 2019 shows the average total Drinking water aluminum and iron concentrations exceeded the MAC The water we use at the mine site for standard domestic standards. However, they remained consistent with the use (for drinking, food preparation, personal hygiene naturally high background concentrations in the region, and general cleaning of the mine camp and offices) is which can be of the same order or higher. These results regularly tested against Kyrgyz, Canadian and World do not represent a significant risk to human health or Health Organization (WHO) drinking water standards. the environment, as iron effects are mainly aesthetic The key parameters of our drinking water are compliant (taste, visual appearance). These are some of the most

with these standards, and therefore safe for all relevant abundant metals in the Earth's crust, and therefore not ) ) unusual to see at these concentrations. AD) uses. NH₃-N ) (NO₂-N )(NO₃-N ) ) Mn) (Mo) The average total manganese concentration (0.224 ) V) End of mixing zone (Al) (Cd (Cr) ) Be) (Bi) (Hg) (Se) mg/L) at the End of Mixing Zone is above its MAC (Na (Cu) (Si) (Fe) (Pb) AD Cyanide (CN-W We sample and test water quality at over 30 points Communal Use standard (0.1 mg/L) in 2019, but lower ChlorineMagnesium (Cl) Sodium (MgSulphateSilver (SO ₄(AgAluminium) ArsenicBoron (As) (BariumB Bryllium(Ba) Bismuth ( CadmiumCobalt Chromium(Co) CopperFlourineIron (F) MercuryManganeseMolybdenum ( Nickel (Ni)Lead AntimonySelenium (Sb)Silicon VanadiumZinc ( (Zn)AmmoniaNitrite Nitrogen NetrogenNitrate ( *Netrogen W ** Hydrocarbons across the Concession area, which are listed and shown than 2018 values. It should be noted that manganese 1000 1000 in the Environmental Monitoring Section. Sampling occurs naturally in the environment, produced by points are selected from a combination of legal erosion and weathering of rocks and minerals. The 100 100 obligations and additional commitments related to concentrations observed do not represent a significant our environmental management responsibilities and risk to human health or the environment, as manganese 10 10 programs. Our main compliance point is where surface effects are primarily aesthetic in humans and livestock. water converges downstream of our operations, below 1 1 where treated water is discharged to the river and According to the EMAP, KGC is required to consider shortly after leaving the concession area (as shown in international guidelines when processing water 0,1 0,1 Fig. 4.3). This point, designated as Wl.5.1, and referred quality data. In particular, the current Canadian water Concentration (mg/L) to as 'End of Mixing Zone', was selected by KGC to quality guidelines do not provide for maximum 0,01 0,01 be protective of the intent of the Environmental concentrations of manganese allowable for livestock. Management Action Plan (EMAP) and the water quality There is a Canadian aesthetic guideline of 0.05 mg/L for 0,001 0,001 in the Kumtor River. Any exceedance of water quality distribution systems, which is not based on toxicity but criteria at Wl.5.1 triggers us to examine the data at rather potential problems in restricted flow devices in 0,0001 0,0001 W1.8, the monitoring point 1 km upstream of Naryn water lines (Olkowski, 2009). Ministry of Health Canada City, which is the nearest to the mine downstream also assigns an aesthetic objective for human drinking community consuming the water. Results for 2019 are water at 0.05 mg/L based on taste, staining of laundry, presented in the bar chart (Fig. 5.3), which includes the as well as quality of plumbing fixtures (Health Canada, Kyrgyz maximum allowable concentration (MAC) limits 2014). There are no Canadian Environmental Quality recommended for water bodies providing public water Guidelines or United States Environmental Protection supply. Agency (US EPA) guidelines for the protection of aquatic life or livestock (CCME, 1999). In Canada, the province of Overall, the glacial origin of surface water sources in British Columbia has a chronic guideline for protection the Kumtor project area results in them having elevated of freshwater aquatic life of 0.7 mg/L in soft water (mg/L sediment loading (suspended solids), visible in the as СаСОЗ) and higher guidelines in higher hardness generally milky appearance of the water. This sediment water (Nagpal, 2001). The average manganese levels loading influences the total concentration of metals in 2016 were well below the British Columbia guideline (aluminum, copper, iron, zinc). This naturally elevated for protection of aquatic life from long-term exposure. background condition was documented in baseline In 2019, the antimony concentration (average of 0.0079 monitoring prior to the start of KGC mining operations. mg/L) exceeded the relevant MAC limit (0.005 mg/L). In light of this, Kumtor retained CanNorth consultants Elevated background concentrations are also reflected from Saskatoon, Canada, to complete a risk assessment in water quality results from Petrov Lake, the source for potential environmental and human exposure to of Kumtor River located upstream of the mine. The antimony downstream of the Kumtor mine. It was presence of sediments and associated metals is not concluded that this antimony level was "well below indicative of poor environmental performance of Kumtor levels associated with potential effects on aquatic mine. Kyrgyz water quality standards refer to total metal receptors and thus are not a concern for the health of concentrations, whereas international environmental the aquatic environment". The antimony concentration water quality standards are more commonly based in 2019 is below the threshold reference value (TRV) for on dissolved metals, which is more indicative of mammals, suggesting that this antimony concentration environmental impact and associated risks. We consider is not toxic to them. these aspects when evaluating water quality at KGC.

80 303-2 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 5.2 WATER QUALITY AND COMPLIANCE Our drinking water is safe and compliant. All our wastewater is treated and is environmentally safe !before discharge 5.3 2019 Water Quality Data in the Kumtor River at the End of the Mixing Zone and Kumtor Concession Area (location Wl.5.1)

) N) AD) NH₃-N ) (NO₂- (NO₃-N) ) Mn) (Mo) ) (Al) (Cd) (Cr) F) (V) ) Be) (Bi) (Hg) (Se) (Na (Cu) (Si) (Fe) (Pb) AD Cyanide (CN-W ChlorineMagnesium (Cl) Sodium (MgSulphateSilver (SO ₄(AgAluminium) ArsenicBoron (As) (BariumB Bryllium(Ba) Bismuth ( CadmiumCobalt Chromium(Co) CopperFlourineIron ( MercuryManganeseMolybdenum ( Nickel (Ni)Lead AntimonySelenium (Sb)Silicon VanadiumZinc (Zn)AmmoniaNitrite Nitrogen NetrogenNitrate ( *Netrogen W ** Hydrocarbons 1000 1000

100 100

10 10

1 1

0,1 0,1 Concentration (mg/L) 0,01 0,01

0,001 0,001

0,0001 0,0001

Note: Data less than detection limit were set equal to half the detection limit. Maximum Allowable Concentration (MAC) * MAC is for Free Cyanide (CNF). Measuring CNWAD is conservative as CNF is always less than or equal to CNWAD. ** Hydrocarbon fractions F1 (C6-C10) to F4 (C34-C50) were analyzed individually and all measured at less than laboratory method dection limit. The value reported above (0.1 mg/L) represents half of the highest detection limit (0.2 mg/L for F3 and F). Other fractions had lower detection limits.

Unfortunately, a quantitative assessment is not possible the United States Environmental Protection Agency (US for birds due to a general lack of available toxicity data EPA) Integrated Risk Information System (IRIS) database. for birds exposed to antimony. Exposures were then calculated for adults, children and toddlers that were assumed to be potentially With respect to human health, the Kyrgyz Republic influenced as part of a shepherd family living seasonally does not have a drinking water guideline for antimony. downstream of Kumtor near the Taragay River. The However, CanNorth (2017) notes that the World Health calculated intakes were "well below TRV levels" indicating Organization (WHO, 2011) has derived an antimony that antimony concentrations "do not represent a cause drinking water guideline of 0.020 mg/L for the protection for concern from a human health perspective" (CanNorth, of human health. Despite the fact that in 2019, the 2017). Notwithstanding the conclusions above, Kumtor concentration limits noted in the WHO drinking water is committed to identifying and mitigating the source of guidelines are not exceeded, CanNorth also considered antimony released to the Kumtor River. other pathways of exposure (e.g., consumption of fish) through the comparison of an intake to a TRV. The TRV for antimony was selected from

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 81 Effluent treatment plant External water quality testing discharge Our operations are routinely subject to inspections by local government agencies, who notify us of any Given the extreme climate conditions at the mine site, concerns identified. We then respond and address these KGC's effluent treatment plant (ETP), which treats the concerns accordingly. effluents contained in the tailings management facility (TMF), generally operates between May and October each year (when water is not frozen). Monthly and historic results During the water treatment season, the Kumtor river, Average monthly monitoring results are presented which receives treated discharge from the ETP, is not in the appendix to this report. Monitoring results frozen and exhibits significant flow volumes. from previous years are presented in the past annual environment reports, which are also available on the The ETP treated water quality results for 2019 are website www.kumtor.kg. presented in the bar chart (Fig. 5.4). The results are compared to the MAD standards and discussed below.

The results show that concentrations of cyanide in the treated effluent discharge, as well as certain

other key parameters met their respective MAD otal Suspended Solids Magnesium Sodium Sulphate Copper Iron Manganese Molybdenum Nickel Zinc Ammonia NytrogenT SS) Free Cyanide standards, including the average total ammonia (as (Mg) (Na) (SO₄) (Cu) (Fe) (Mn) (Mo) (Ni) (Zn) (NH₃-N) (T (CN-F) 10000 10000 N) concentration (21.39 mg/L). However, there were onetime exceedances of total ammonia (as N), which do not represent any significant risks to the environment. 1000 1000 Sewage treatment plant 100 100 discharg 10 10

In 2019, the average generation of sewage water was 1 1 approximately 369 m3/day. The quality of treated Concentration (mg/L) water discharged from the STP met all required MAD 0,1 0,1 standards, including the total ammonia value (1.7 mg/L) which met the approved MAD standard (2.01 0,01 0,01 mg/L) (Table 5.5). In 2019, the antimony concentration (average of 0.0079 mg/L) exceeded the relevant MAC 0,001 0,001 limit (0.005 mg/L).

References: Canadian Council of Ministers of the Environment (CCME), 2008. Canadian Water Quality Guidelines (CWQG). Accessed at: https://www.ccme.ca/files/Resources/supporting_ scientific_documents/cwqg_pn_1040.pdf; United States Environmental Protection Agency (US EPA), 1995. 1995 Updates: Water Quality Criteria Documents for the Protection of -N) Aquatic Life in Ambient Water. ₄) otal Suspended Solids Chlorine Sulphate Ammonia Nitrogen Nitrite Nitrogen NitrateO₃ Nitrogen-N) T SS) Biochemical (Cl) (SO (NH₃-N) (NO₂ (N (T Oxygen Demand (BOD5) MBAS 10000 10000

1000 1000

100 100

10 10 Concentration (mg/L)

1 1

0,1 0,1

82 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 5.4 2019 Water Quality Data at the Dis charge Point of the Effluent Treatment Plant (location T8.4)

otal Suspended Solids Magnesium Sodium Sulphate Copper Iron Manganese Molybdenum Nickel Zinc Ammonia NytrogenT SS) Free Cyanide (Mg) (Na) (SO₄) (Cu) (Fe) (Mn) (Mo) (Ni) (Zn) (NH₃-N) (T (CN-F) 10000 10000

1000 1000

100 100

10 10

1 1 Concentration (mg/L) 0,1 0,1

0,01 0,01

0,001 0,001

Note: Data less than detection limit were set equal to half the detection limit. Maximum Allowable Discharge (MAD) * MAC is for Free Cyanide (CNF). Measuring CNWAD is conservative as CNF is always less than or equal to CNWAD.

5.5 2019 Water Quality Data at the Discharge Point of the Sewage Treatment Plant (location SDP)

) otal Suspended Solids Chlorine Sulphate Ammonia Nitrogen Nitrite Nitrogen Nitrate Nitrogen T SS) Biochemical (Cl) (SO₄ (NH₃-N) (NO₂-N) (NO₃-N) (T Oxygen Demand (BOD5) MBAS 10000 10000

1000 1000

100 100

10 10 Concentration (mg/L)

1 1

0,1 0,1 Note: Data less than detection limit were set equal to half the detection limit. Maximum Allowable Discharge (MAD)

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 83 5.3 GLACIER MANAGEMENT

Kumtor's high altitude mining operation is in close proximity to active glaciers, with part of the ore deposit and associated infrastructure extending beneath or affected by moving glaciers.

Ice removal is required to provide safe access to ore life of the mine. Over the years, KGC has found the and has been an approved part of mining since 1994. best mining options, adapting to the current situation. Glaciological studies have shown that, compared to the Taking into account the opinion of stakeholders, KGC natural melting caused by climatic changes, the removal no longer deposits waste rock on the part of the and relocation of glacier ice to ice fields (practically at glacier surface and now segregates waste rock and ice, the same elevations) protects the relocated ice from avoiding co-disposal. The ice removed by Kumtor as excessive melting, significantly reducing their loss. part of its mining process is deposited back on other ice fields. In 2019, approximately 5.8 million tonnes of ice In response to stakeholder concerns, and taking into was removed and placed subsequently in the isolated account changes in the legislation of the Kyrgyz Republic areas. Ice removal will need to continue in the future to prohibiting activities that result in the acceleration of provide ongoing safe access to the ore body as mining glacier melting, or activities that may affect the condition progresses. of glaciers, KGC describes relevant information on mining operations. Environmental aspect The impact of climate change has been observed in Ice unloading Central Asia, as well as around the world, over the past As visible on the map in the Environmental Monitoring century. According to the United Nations Development section of this report (Figure 4.3 - Key Environmental Programme (UNDP), nearly 1/3 of the glacial area of Monitoring Locations), parts of five active glaciers are Central Asia has disappeared since 1930, including the glaciers of the Kyrgyz Republic. In 2003-2013, the Ak- located within the Kumtor Concession area (Davydov, 2 Lysyi, Sarytor, Petrov, Bordu). Ice is also present in Shyirak massif glaciation reduced by 21.9 km or 0.59% extensive ice fields in the southern and eastern parts per year. Both the rates of reduction of the Ak-Shyirak of the Concession area. The continuation of mining at massif glaciers and the rates of retreat of the glaciers Kumtor depends on our ability to minimize the impact tongues have significantly increased in the recent years. on glaciers and remove the ice only in the vicinity of the This is due to the rapid increase in air temperature in the open pit and other infrastructure throughout the warm period (May - September).

5.6 Retreat of the observed glaciers, m/year

2017

2018

2019 41 11 15 17 15 15 15 8 15 15 12 10 28 14 11 17 30 27

Lysyi Sarychat Ashutor Chonkotur Sarytor Bordu

84 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 Glacier monitoring 5.7 Retreat of the observed glaciers,m/day 5.3 GLACIER MANAGEMENT The nature of all glaciers is for them to move steadily downhill, much like a very slow-moving river. The movement of the Davydov and Lysyi glaciers has been monitored since 1995, before mining started, with Lysyi 2017 Sarytor and Bordu glaciers included in recent years. 0.040 2018 Flow rates of the glaciers, like any other glaciers, follow a seasonal pattern, being faster in warmer months and 2019 slower in winter. The retreat of the observed glaciers for 0.030 2015-2019 is shown in Fig. 5.6. 0.020 In 2014, Kumtor constructed an in-pit retaining buttress to reduce the movement rate of the south arm of the 0.010 Davydov Glacier. Regular monitoring has shown this has been an effective engineering solution, and has reduced 0.000 the quantity of ice that needs to be removed to ensure Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec pit safety.

Averaged movement rates of glaciers detemined by the fixed points (ablation stakes #1, 3, 6) for 2017-2019 are shown in Fig. 5.7.

In 2014, we commenced a long-term glacier and 0.05 Sarytor hydrometeorological monitoring program covering KGC concession area and basins of Arabel and Uchkol rivers. 0.04

The studies are conducted by the Institute of Water 0.03 Problems and Hydropower under KR NAS with involvement of experts from MGU (Moscow State 0.02 University, Russia). The monitoring program aims to assess the status of glaciers and trace the dynamics of 0.01 their change (movement rate, linear retreat, and surface 0.00 depression) and reflective properties of their surfaces Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec (albedo) within the area of immediate anthropogenic impact by KGC and comparison of obtained data with similar observations undertaken on glaciers located at significant distances from the mine. Further information is contained in the case study in this chapter. Davidov Regulatory aspects 0,15

Measures to move glaciers and ice have been a feature 0,12 of mining operations at Kumtor starting from 1994.

These measures are the subject of frequent inspections 0,09 and considered when the KR supervisory and regulatory authorities issue permits and approvals to KGC for any 0,06 activity, and are also studied by international technical and environmental experts. In November 2017, 0,03 amendments regulating the operations on Davydov and 0,00 Lysyi Glaciers were introduced by the KR Parliament into Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec the KR Water Code.

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 85 5.8 Relocation of ice to isolated areas at the mine

2017 mil t/year 4.4 2018 mil t/year 2.3 2019 mil t/year 5.8

Glacier research and assessment of technogenic impacts on Ak-Shyirak Massif Glaciers

Studies of the Ak-Shyirak massif glaciers have The monitoring program aims to assess natural been conducted for more than 140 years. As a (due to global warming) and technogenic (caused result of the studies, it was found that the area by the Kumtor mine activities) factors affecting the of glaciation of the Ak- Shyirak massif in the late shrinkage of glaciers in KGC concession area. 1950s - early 1960s was 436 km2 (Katalog lednikov SSSR [Glacier Catalogue of the USSR] 1969,1970). The studies have shown that the melting In 2019, KGC continued funding the glacier capacity depends not only on the changes in air research covering the glaciers within and outside temperature, but also on the increase in natural the KGC concession area. In 2019, the Kyrrgyz and technogenic pollution of the glacier surfaces. Institute of Water Problems and Hydropower An increase in pollution on glaciers leads to a (IWPH) of the KR National Academy of Sciences decrease in surface albedo, which, in turn, affects continued 2014-2018 research and based on the absorbed radiation amount. the approved by both parties expanded glacier and hydrometeorological monitoring program covering KGC concession area.

86 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 The main conclusions from the observations in 2018-2019

In 2018-2019, from all observed glaciers of a in the period of field measurements 1985-1989 northern macroslope of the Ak-Shyirak ridge remained within the negative values (-) 140 mm (Sarytor, Lysyi, Sarychat, Bordu) the Lysyi glacier of water equivalent, and in the period 2014-2019 underwent the greatest ablation. -within significantly negative values (-) 923 mm of water equivalent. Lysyi glacier is subject to the significant technogenic impact of the Kumtor mine In 2018-2019 balance year, the highest movement operations. This is due to the following: first, rates were recorded for the Chon Kotur (17m/year) the Lysyi glacier is located downwind relative to and Lysyi (15m/year) glaciers. the mine (which already indicates its greatest vulnerability to dusting through the Aeolian In 2014-2019, the observed glaciers in the Arabel deposition of dust brought by the winds prevailing river basins, as well as in the whole Central Asia, in this area); second, this glacier is closely adjacent tended to retreat. In the context of the Arabel to the waste rock dumps, which are the most and Uchkol river basins, this can be seen on the powerful potential source of fine earth which can examples of Sarytor and Petrov glaciers, which be transferred in the form of Aeolian dust to this have been monitored on a periodic basis since glacier. 1932. The same picture is seen in the results of glacier monitoring in these basins, including For the period 2014-2019, all the observed glaciers measurements of the mass balance of Sarytor and underwent a persistent retreat of the front tongue Bordu glaciers. Based on this, it is concluded that sections. This can be most associated with such retreat of most of the observed glaciers in the natural causes as the apparent global warming. Arabel and Uchkol river basins is mainly caused by global climate warming, and not by technogenic In general, according to the calculations of the air impact of the mine operations. temperatures adjusted in one line made by the Tien-Shan-Kumtor Weather Station, the average Research of the glaciers surrounding the Kumtor annual air temperature increase trend made up mine will be continued in 2020. 1.5 °C for 1930-2019. Due to the ongoing global warming, mass balance of the Sarytor glacier

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 87 5.4 PETROV LAKE WATER BALANCE

Water balance of the Petrov Lake was estimated based on data of water flow in the river, as well as water consumption and discharge to determine the total volume of water used at the Mill in 2019.

To determine the impact of water intake by the Kumtor Lysyi Creek. Lysyi Creek flows into the Kumtor River mine on the Petrov Lake water balance, the Company upstream of the flume. Total flow of the Lysyi Creek took measurements at points of water outflow from the throughout the season comprised 11.46 million m3. lake. We used readings from sensors installed at the Petrov Lake for measurement of water level fluctuations, Consumption of water at the Mill, Camp and other water meters at the water supply pipeline to the Mill, facilities. The total water consumption by the Mill and data taken from the Kumtor River flume, as well as the camp was measured by flow meters at the pump measurements of precipitation and evaporation. station on the Petrov Lake and the Potable Water Treatment Plant (WTP). In 2019, the total volume of Volume of water flow measured at the Kumtor River water consumed by all facilities at the Mine was 5.41 flume is determined by: million m3.

■ Volume of treated effluents discharged from Effluent Precipitation. Volume of water evaporated from the Treatment Plant (ETP); surface of the Petrov Lake was calculated according to Meyer's equation (equation for determination of ■ Inflow of water from the Lysyi Creek; evaporation from water surface). Evaporation from the surface of the Petrov Lake throughout May to ■ Volume of precipitation; September comprised 127.39 mm or 0.51 million ■ Inflow of glacial melt water into the Petrov Lake; m3. This value does not contradict the data of A. M. Molchanov, who notes that evaporation from the surface ■ Inflow of spring meltwaters or surface waters into the of mountain lakes in the area of the Petrov Lake is below Petrov Lake. 400 mm/year (A. M. Molchanov, "Central Asian Lakes", Gidrometizdat, Leningrad, 1987). Total inflow into the Petrov Lake is calculated using the following formula: With precipitation of 333.3 mm, the volume of water in the Petrov Lake increased by 1.34 million m3. VInflow =V Water according to Kumtor River flume – VWater discharged from ETP – VLysyi Creek Flow +VWater Changes in volume of accumulated water. When consumption by the Mine – PPrecipitation + EEvaporations comparing the start and end of the year, the level of from the Lake ± VLake water volume fluctuations. water in the Petrov Lake increased by 0.16 m - from Outflow calculation 3,731.52 to 3,731.68 m. Final Calculations. Using the above formula, the total Kumtor River. Volume of inflow into the Kumtor River calculated inflow into the Petrov Lake in 2019 was 115.44 is obtained by summing outflow from the Petrov Lake, million m3. discharge from ETP, and Lysyi Creek flow. Kumtor River flow in 2019, according to measurements at the flume Conclusion. The volume of water consumed by the comprised 127.68 million m3 for the period from May to KGC operations in 2019 comprised 4.69% of total water October. inflow into the lake. The above calculations of the water balance demonstrate that the volume of water Effluent Treatment Plant. Volume of water discharged consumed from the Petrov Lake by the mine facilities for from ETP is obtained by summing up readings of production, domestic use and other needs is negligible. flowmeters installed at the pump station #3. Total General data on water consumption and diversion, volume comprised 5.9 million m3 (for the period from including wastewater treatment, are presented in the May to October). Table 5.2.

88 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 5.4 PETROV LAKE WATER BALANCE

Risk of Petrov Lake outburst and preventive activities conducted by the Company

Understanding the concerns of state and to develop design solutions for lowering water regulatory authorities, as well as the public, KGC level in the Petrov Lake. In 2017, commissioned by carries out continuous monitoring of water level KGC, JSC "Kyrgyzsuudolboor"developed a design in the Petrov Lake, water flow in the Kumtor River for a gradual lowering of water level in the Petrov and readings of thermistors installed at three Lake. The design has obtained all expert opinions different points in the natural moraine dam. and approvals in the relevant state authorities, as required by the KR legislation. KGC commenced In 2015, commissioned by KGC, the head of the the 1st stage of the design "Gradual lowering research and design laboratory "Geotechnical of water level in the Petrov Lake". 2nd stage is Objects Stability" Ph.D. Chukin B.A. developed scheduled for the LOM end, including further recommendations for a system of instrumental water level lowering in the lake and construction monitoring of the condition of the Petrov of a spillway channel, which will eliminate the risk Lake natural dam. In accordance with these of a significant failure of the natural dam. recommendations, KGC has repeatedly taken steps

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 89 6 SOCIAL RESPONSIBILITY

6.1 STAKEHOLDER ENGAGEMENT

Effective stakeholder engagement is essential for us to manage our social responsibility. We have established structured processes to effectively listen to and communicate with our stakeholders, including regulators, stakeholders, employees, local communities, small businesses, and the general public.

The process also includes bringing stakeholders together. Many of the projects described in this section Public communication have brought together communities, other supporting Adhering to the information transparency policy and partners, the international aid community (see case main principles of the Extracting Industries Transparency study boxes), and government representatives. Initiative (EITI), KGC recognizes the importance of providing accurate and objective information on the Company and Engagement context satisfying the information needs of all stakeholders. Effective engagement with all stakeholders is highly important for us Our approach to engagement reflects our desire for in terms of social responsibility management. respectful and meaningful dialogue within the complex social and political context of the Kyrgyz Republic. This In recognition of the increased interest in KGC’s activities, context means that public and media interest in the KGC we update our corporate website (www.kumtor.kg), in activities remains high. three languages (English, Russian, and Kyrgyz) on a regular basis. On the website, we post news releases, downloadable Structured dialogue reports, and media articles that feature KGC. Our local engagement is maintained through our two Stakeholders can also have an access to the information Regional Information Centres, which have been established describing our business, and our environmental and social in the Jeti-Oguz and Ton districts. The main objective of responsibility activities. the Centres is to provide information about KGC to local residents. This includes information related to our hiring We commission films about our activities that we post procedures, humanresources policies and job vacancy on our website and through social media channels, such information. Residents of Balykchy can get information as Youtube and Facebook (as Kumtor Gold Company). about the company's activities in the office of Balykchy We have a free telephone number to allow members of Municipal Administration, where visitors are received the public to contact us, in order to express a concern or by Regional Sustainable Development officer once a request information, and we also have an email address week. Regional Sustainable Development officers attend for this purpose, or can be contacted via our website. On local community events,monitor the implementation of a quarterly basis, we produce special issues of regional development projects funded by KGC, and act as a point of newspapers in Kyrgyz and Russian languages about our first contact for members of local communities. In addition activities and distribute them in focus areas. to these structured activities, other types of formal and informal engagements occur on a regular basis across our On a regular basis, we organize mine site visits for host communities, with a range of other stakeholders such stakeholders, including representatives of state bodies, as community leaders, community organizations, local Government, local authorities, partner organizations, as small businesses, and farmers. To ensure partnerships based well as teachers and students from various educational on consensus we initiated an establishment of Regional institutions. The Program for such groups usually includes Committees in Jeti-Oguz, Ton and Balykchy. a visit to the main work areas: Сamp, Mill, Open Pit, Petrov Lake, Tailings Management Facility and Water Treatment Committee members are local authorities, heads of village Stations. councils, representatives of civil society organizations, members of different unions. In these meetings, KGC Department Managers accompany the groups to the management raises issues about operations and relevant sites and discuss the emerging issues on the spot. defines plans of investment projects in liaison with local communities. Decisions are made together with We continue our cooperation with the International the representatives of each Committee so that KGC’s Business Council (IBC) and took part in all meetings of its investments meet expectations and needs of communities. Board. IBC is the largest multisector organization that unites Regional Committee meetings take place every quarter. the leading mining companies. We took an active part in the events of the KR Chamber of Commerce and Industry, as well as the American Chamber of Commerce.

90 102-42/102-43/103-2/413-1 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 KGC maintain a structured dialogue with representatives of local communities, strengthening !cooperation with all stakeholders.

Issyk-Kul Reginal Development Fund KGC contributes 1% of gross annual revenues to the Issyk- In 2019, the IKDF started an interest-free financing of Kul Development Fund (the “Fund”). This fund is governed budget revenue generating business projects aimed at by an oversight and steering committee (independent of creating jobs and developing the Issyk-Kul region. KGC), which includes local government representatives and NGOs. The fund is designed to develop the socioeconomic Financial support was provided to entrepreneurs from infrastructure of the Issyk-Kul Region in accordance to local Balykchy, Jeti-Oguz and Ton districts. Thus, for example, and regional government priorities. Since the creation of the 3.5million KgSwere allocated to entrepreneur fromBalykchy fund in 2009, KGC has invested more than $78.4 million into to establish sewing workshop, 1,55 million KgS to projects as diverse as kindergartens, schools, sports clubs, entrepreneur from the village of Lipenka in Jeti-Oguz district and irrigation infrastructure across the Issyk-Kul region. We to establish an agricultural farm, and 5.6million KgSwere understand that the Fund continues to be criticized for lack allocated to resident from the village of Barskoon to of transparency and that some stakeholders are expressing establish a stone crushing workshop. concerns about selection of projects and application of Funds in the amount of 50% of the IKDF budget are used the IKDF resources. We are aware of these concerns and in coordination with KGC for the social and economic continue to encourage the fund to be more transparent. development of Jeti-Oguz and Ton districts, as well as Balykchy city. 6.1 Annual Contribution to Issyk-Kul Region Development Fund

Units 2016 2017 2018 2019

Million US$ 6.2 6.4 7.3 8.4

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 102-42/102-43/103-2/413-1 91 Kumtor Gold Company contributes 1 percent of its gross revenues to the IssykKul Development Fund. In 2019, 592,469,150 soms were transferred to the IssykKul Development Fund Distribution of funds by sectors (in mln soms)

Education Health Culture

Atual Atual Atual eenitures 82,666.9 eenitures 27,158.1 eenitures 22,617.2

Roads and water supply Own investments Sports

Atual Atual Atual eenitures 123,205.8 eenitures 46,905.8 eenitures 58,809.8

Distribution of funds by districts and towns (in mln soms)

Name of istrits Planne Atual an tons Total Total Budget generating projects et-Ogu Distrit 12092 990164 20 Atual Ton Distrit 509 669 91 eenitures 23,710 Balkh 9210 29592 4 Ak-Suu Distrit 509040 4524 95 Issk-Kul Distrit 15062 42109 64 Tu Distrit 45620 44620 9 Karakol 10290 140 96 Regional institutions 5626 404 6 Other Total for the Region 605195 46 541 4

Atual eenitures 80,265.6

92 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 The Social Partnership for Regional Development Fund Kumtor Gold Company contributes 1 percent of its gross revenues Nature Development Fund, was established to provide funding for social projects in the to the IssykKul Development Fund. In 2019, 592,469,150 soms Cancer Care Support Fund and KR regions such as education, health, sports and recreation, and other initiatives aimed at regional development. were transferred to the IssykKul Development Fund Social Partnership for Regional Development Fund In 2019, KGC has transferred US$ 5.95 million to the Social Partnership for Regional Development Fund, including Distribution of funds by sectors (in mln soms) The Nature Development Fund, Cancer Care Support Fund a lump-sum payment in the amount of US$ 5 million and Social Partnership for Regional Development Fund and monthly contributions equivalent to 0.4% of KGC’s were established within the framework and pursuant to revenues. A second lump-sum payment in the amount of the Strategic Agreement for Environmental Protection and US$ 5 million is planned to transfer in 2020. Investment Promotion between the Government of the Kyrgyz Republic, Centerra Gold Inc., Kumtor Gold Company The company promotes and is interested in implementing CJSC and Kumtor Operating Company CJSC signed on sustainable social and economic projects providing stable September 11, 2017 and entered into force in August 2019. job places for local community after closure of mine, as well as additional tax contributions to the local budget. The Nature Development Fund was established in order to develop the environment protection potential Education Health Culture throughout the Kyrgyz Republic territory, to support Impact assessment environment and nature well-being, to promote the effective use of the KR natural resources and other Apart from regular monitoring and evaluation processes Atual Atual Atual environmental purposes. The Nature Development Fund's embedded in each project and donation supported by eenitures 82,666.9 eenitures 27,158.1 eenitures 22,617.2 resources shall be used exclusively for financing the the company, we regularly conduct impact assessments environmental protection and nature conservation projects and perception studies in our focus areas – Jeti-Oguz, Ton in the Kyrgyz Republic. In 2019, KGC has transferred US$ and Balykchy. Our Stakeholder Engagement Strategy and 61.1 million to the Nature Development Fund, including Plan are based on these studies and quarterly review of a lump-sum payment in the amount of US$ 50 million major stakeholders and their concerns, documented in and annual contributions in the amount of US$ 3.7 million internal system, updated by employees of the Sustainable since 2017. Annual contributions will be allocated by the Development Department. Company until the end of the life of the mine. Based on analysis and studies we have formulated a The Cancer Care Support Fund was established to summary of stakeholder concerns. develop the cancer care service of the Kyrgyz Republic, to raise the Kyrgyz Republic potential to reduce the number Roads and water supply Own investments Sports of cancer diseases in the country and to improve the quality of medical services provided to patients with cancer. The resources of the Fund should be used exclusively to Atual Atual Atual finance the reconstruction and purchase of equipment for eenitures 123,205.8 eenitures 46,905.8 eenitures 58,809.8 the National Center of Oncology and Hematology under the KR Ministry of Health, for treatment of oncological diseases, conduct researches, support and hold educational activities in the Kyrgyz Republic. KGC transferred US$ 7 million to the Cancer Care Support Fund in 2017, and the remaining US$ 3 million will be transferred in 2020, Distribution of funds by districts and towns (in mln soms) pursuant to the Agreement.

Name of istrits Planne Atual an tons Total Total Budget generating projects et-Ogu Distrit 12092 990164 20 Atual Ton Distrit 509 669 91 eenitures 23,710 Balkh 9210 29592 4 Ak-Suu Distrit 509040 4524 95 Issk-Kul Distrit 15062 42109 64 Tu Distrit 45620 44620 9 Karakol 10290 140 96 Regional institutions 5626 404 6 Other Total for the Region 605195 46 541 4

Atual eenitures 80,265.6

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 93 6.2 Summary of stakeholder concerns

Stakeholders Topic Report section where discussed

■ President’s Message ■ Project benefits ■ Economic Responsibility Kyrgyz Republic ■ Changing legal agreements Government and ■ Social Responsibility ■ Environmental claims Parliament ■ Corporate Governance Structure ■ Waste Management and permits for new landfills. ■ Environmental Sections

■ Economic benefits ■ Environmental impacts ■ President’s Message Various Commissions, ■ Waste rock management ■ Economic Responsibility Government Agencies ■ Tailings dam displacement ■ Social Responsibility and Local Communities ■ Impacts on glaciers ■ Environmental Sections ■ Glacial lake outburst flood ■ Mine Closure ■ Mine closure and its funding

■ President’s Message ■ Employment opportunities ■ Water Use and Treatment ■ Environmental impacts Local Communities, ■ Tailings Management Facility Youth, Vulnerable ■ Water Resources ■ Mine Closure Groups ■ Tailings Management Facility ■ Social Responsibility ■ Community support, projects and donations ■ Local Procurement

■ President’s Message ■ Economic Responsibility Local Businesses ■ Supplying goods and services ■ Local Procurement ■ Social Responsibility

■ Employment conditions ■ Employment at Kumtor Employees and ■ ■ Contractors Benefits People ■ Health, safety and well-being ■ Occupational Health & Safety

■ Environmental impacts ■ President’s Message Conservation NGOs ■ Biodiversity strategy ■ Environment sections ■ Mine closure ■ Mine Closure

KGC’s Sustainable Development Department has KGC Grievance Mechanism two information centres in the Issyk-Kul region, and As the major company operating in the Kyrgyz Republic, community representatives and local authorities KGC receives complaints and requests ranging from dust contact our specialists for any information. In their turn, burden because of KGC trucks movement to job requests they report all issues raised by communities to the and hospital or road construction requests. We maintain Goverment Relations & Community Relations Manager. an open dialogue with all stakeholders and listen to Our grievance acceptance mechanisms are available rational ideas. The measures taken by the company in all regional information centres. We try to resolve with regard to the dust on the technological road are each raised issue and concern, and provide requested described in the Environmental Monitoring Section. KGC information for every stakeholder group. All grievances also experienced temporary road blocks in 2012 and and issues raised are also reported directly to the KGC 2013, but none in 2014-2018. Protests typically involved senior management. demands for a greater distribution of the mine’s profits and benefits.Grievances on sustainability issues are dealt in accordance with the accepted grievance acceptance mechanisms. In 2019 KGC received 14 grievances and resolved all of them during the year. Relevant meetings were arranged to consider the ways to resolve these grievances. We understand the importance of raised concerns and their timely resolution. The Company will continue to dedicate its efforts to mitigate related risks.

94 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 6.2 COMMUNITY INVESTMENT PROJECTS We believe in importance of providing assistance to local communities in reaching their goals to develop local economy and well-being of Issyk-Kul citizens.

Taking into account that the mine closure will have a Sustainable Development Strategy of the Issyk-Kul Region direct impact on region’s economy, we consider that our that includes four main areas: high-priority task is to have a structured and well-planned approach in community development projects, which 1. Support business growth and diversification (especially is therefore a vital component in maintaining our social small businesses and entrepreneurs). license to operate. 2. Support to development of the agricultural sector. The current life of the Kumtor mine is expected to end 3. Youth and educational projects. in 2026. Given its role as a major employer, taxpayer, and purchaser, mine closure is expected to bring with it 4. Environmental protection projects. a negative economic impact in the Issyk- Kul region and across the country. In order to reduce this impact, the strategy of our 6.3 Sponsorships & community investments is to promote and develop a more diverse economy which will not be over-reliant on KGC. We Sustainable Development work in partnership with a number of international and local Projects organizations to maximize the impact of our community investments. The partnerships focus mainly on the southern Units 2016 2017 2018 2019 shore of Issyk-Kul Lake. Projects are developed taking into account stakeholder input, community needs, company risks, and availability of an experienced partner that can Million US$ 0.7 0.9 2.2 1.35 deliver against expected outcomes. Note: From June 2016 until October 2017, KGC was unable Within the framework of implementing its programs in the to finance development projects because of the decision of the region, the Company strictly follows the interdistrict court to prohibit the transfer of assets to third parties.

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 95 Waste segregation introducing project "Uch Chaka"/ Projects implemented in 2019 Three Bins" in Jeti-Oguz and Ton districts. "One Village One Product" Project (OVOP) The project goal was to create the potential for 6 local The goal of the project is to combine the efforts of municipal enterprises and to raise awareness of the local private entrepreneurs and local communities to develop community about correct and effective practices of solid the economic potential of the Issyk-Kul region by waste management and sorting. manufacturing products with the use of available local resources. KGC restarted the project in 2016 (more precisely, 2019 results: it started co-financing again). A small business model based on the "One Village One Product" approach had already ■ 6 waste collection points providing the job been created in the Issyk- Kul region as part of the OVOP opportunities for the local residents were opened in project, funded by the Japanese International Cooperation Barskoon, Kyzyl-Suu, Tamga, Eshperov, Kadjy-Sai and Agency (JICA). Target group and project area: local Bokonbaev villages; community associations engaged in the production of felt ■ During the period from August to December 2019, products in the Jeti-Oguz and Ton districts. 658 kg of plastic, 5.4 tons of glass, 428 kg of paper and 382 kg of cardboard, as well as 7 kg of aluminum 2019 results: cans were collected in these 6 points. About 7,000 kg of recyclable materials have been removed from the ■ 8 felt production facilities were created (4 in Jeti- landfill since May; Oguz and 4 in Ton district); ■ A manual for waste segregation was developed and ■ 1,462 people were involved as direct beneficiaries; 10,000 copies have been distributed to local schools ■ 1,411 people were involved as indirect beneficiaries; and rural administrations; ■ 130 trainings were conducted; ■ 2,725 schoolchildren from 12 schools of the Jety- ■ Participation in EXPO-19; Oguz and Ton Regions took the trainings on separate ■ 105 types of new products were developed; waste collection; ■ ■ Total earned by the felt production facilities in Jeti- 12 mass clean-up events were arranged and 21 Oguz and Ton districts is 11,428,077 soms. plastic garbage cans were installed in public places; ■ 4 trainings were organized for employees of Education Improvement Program in the Issyk-Kul municipal enterprises and rural administrations. region The project was launched in 2016 to improve the main high Potable Water Supply Projects school education indicators (Grades 10-11) in individual The goal of this project is to provide potable water to local schools in the Issyk-Kul region to increase the number of communities. The project is highly demanded as it improves graduates enrolled at universities. the lives of thousands of people. Applications for potable In 2019 the project was implemented by two organizations water projects, submitted to the Company are discussed at and was focused on two main components: the Regional Committee sittings. 1. capacity building of high school teachers; 2019 Projects: ■ 2. skills development of students to pass structured testing; The Potable Water Project to provide drinking water educational guidance and career development of to the residents of Jenish village, Jety-Oguz District students. was started in 2018 and completed in 2019. KGC has allocated KgS 7.6 million for the repair of reservoirs, 2018-2019 results: construction of a sanitary protection zone, water pipeline and a distribution network with a length of ■ 14 schools were involved in the project; 6.5 kilometers, rehabilitation of the water intake area ■ 485 teachers were trained; as well as the technical pipelines. ■ 422 students completed monthly training in 2018-2019 ■ A joint project to provide potablr water to residents academic year and 542 students in 2019 academic year of the Bokonbaev village, Ton District. KGC has (September- December); purchased pipes in total for KgS 5.64 million for ■ 71.3% of graduates who studied at Kyrgyz language laying out additional water supply lines for 397 schools and 73% of graduates who studied at Russian families. All works were funded by the local village language schools who passed were able to get a passing administration. score at the National Testing (ORT) (110 or more); ■ The Potable Water Project for the Orgochor village ■ 2 school based Resource Centers were created and in Jety-Oguz District was funded jointly with the equipped in the Ton and Jeti-Oguz districts; FSDS and the local village administration. KGC has ■ 86 pilot schools participated in the educational guidance allocated KgS 2.77 million for drilling of the well. program; ■ The project for rehabilitation of water intake and ■ 150 teachers from 86 pilot schools took part in the educational guidance trainings; reservoir areas in the Tilekmat village, Jety-Oguz District. 3,105 people live in the village. There are ■ About 800 high school students took part in the educational guidance trainings; 786 households in the village. Previously, only half of the village used to have access to drinking water, ■ 457 students received advice from social educators; due-to repair of the well as part of the project, today ■ 852 students took part in the "My future profession" the whole village is provided with drinking water. The essay contest. project budget made up KgS 4.5 million

96 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 Irrigation Improvement Project Construction of the mini-football field in the village of Tamga was completely at the Company's expense: The project goal is to support agricultural development and • In the village of Svetlaya Polyana. to stop land degradation as well as to provide access to Budget - KgS 1,454,292 irrigation water. • In the village of Tamga. Budget - KgS 2,280,514 The main objectives of our investments are to: • In the village of Kyzyl-Suu. Budget - KgS 2,760,598 • ■ Increase the irrigation water volume and expand In the village of Boz-Beshik. Budget - KgS 1,466,390 significantly the irrigated land area. • In the village of Baltabay. Budget - KgS 1,791,686 ■ Increase crop productivity and, as a result, increase • In the in the village of Jele-Dobo. income for farmers. Budget - KgS 1,968,428 ■ The areas eligible for the irrigation restoration project ■ In the village of Jele-Dobo. Budget - KgS 1,968,428 were identified during the Regional Committee ■ Purchase of artificial turf for the mini-football field in the meetings. village of Kyzyl-Tuu, Ton district in the amount of KgS In 2019, 42 channels totaling to 271,800 m3 were 1,130,000. cleaned up in the Jeti-Oguz District. All work was ■ Construction of a playground in the village of Orgochor, performed by local contractors who have signed the Jeti-Oguz district. Budget - KgS 982,460. contracts with KGC, thus providing opportunities to ■ Rehabilitation of an earth road in the upper valley of local companies to develop and replenish the regional Ton district with a total length of 18 km. Residents of 10 budget. villages can now drive on a safe road. KGC purchased Projects initiated by local 15,888 tons of diesel fuel. ■ Purchase of materials for a local greenhouse in Ton communities district in the amount of KgS 156,260. This project provides financial support for local initiatives ■ Project to improve infrastructure of villages and material in accordance with requests that are pre-discussed at and technical base of local governments (Aiyl Aimaks) Regional Committee meetings. Projects are implemented and state bodies of Ton district as part of the competition in partnership with local authorities, local NGOs and youth for improvement and landscaping in Ton district - KgS groups. Projects are initiated, owned and supported by 1,500,000. local communities. Projects initiated by local communities ■ Publishing of the encyclopedia of Jeti-Oguz district - KgS should benefit a large number of people, not individuals. 1,000,000. The projects are aimed at developing local infrastructure, supporting social initiatives, sports and youth, as well as supporting vulnerable groups. Rehabilitation of roads leading to remote pastures Projects supported in 2019: The project goal is to provide to local farmers and shepherds access to remote pastures in order to prevent the ■ Construction mini-football fields in Jety-Oguz district. degradation of pastures located nearby. Remote pastures The main construction works were financed by KGC and are no longer used, bridges are destroyed, resulting in the artificial turfs were purchased from the Issyk-Kul excessive concentration of cattle around large population Development Fund budget. areas. In 2019, the KGC supported a project for rehabilitation of 2 pasture roads leading to remote pastures across the Taragay and Arabel rivers in Jety-Oguz District, and allocated funds to purchase heavy equipment for Ton Municipal Enterprise, which will be used for pasture restoration.

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 97 Emergency Earth Works project Supporting businesses The project goal is to provide support to the regional We support the development of local businesses in a departments ofthe KR Ministry of Emergency Situations to number of ways. The most important one is based on our prevent and/or addressing such emergencies as mudslides, policy of supporting local procurement and encouraging floods and landslides, which, as a result of increasing new local suppliers to supply goods and services, as average temperatures and precipitation in the country, can described in the Local Procurement section. cause damage to roads, houses and loss of life. However, we are aware of the risk for individual suppliers to The company concludes the contracts with local companies become overly reliant on business with KGC. Therefore, we to perform the following work. work with suppliers to support them in improving business processes (such as quality management systems) and In 2019, the following work was completed in Jety-Oguz encourage them to seek additional customers apart from District: KGC. ■ Clearing 6 irrigation channels Another important initiative is our micro-credit program to ■ Strengthening the river banks of the Chon-Kyzyl-Suu and support farming businesses and small enterprises, which Jety-Oguz rivers has been implemented in the region since 2006 and is ■ Restoration of roads leading to pastures aimed at the socio-economic development of the region. The Company supported the establishment of three micro- As a result of the work performed, 36 houses and 6 farms, credit agencies, which offer the lowest annual interest rate more than 400 private gardens and agricultural lands got (10 to 12%) in Kyrgyzstan. With support of this program, access to irrigation water. residents of Jeti- Oguz, Ton districts, as well as Balykchy, In Ton District: who are interested in receiving financial resources, have an opportunity to develop farms, livestock, create and maintain ■ Protection of 4.5 km Kyzyl-Tuu river side small and medium businesses. ■ Reinforcement of 2 bridges ■ Road rehabilitation

As a result, more than 60 homes were protected and agricultural land was provided with access to irrigation water.

98 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 6.4 Indicators as of December 31, 2019 (KgS)

Indicator Jeti-Oguz Ton Balykchy Total

Credit Portfolio 120,764,787 85,137,809 59,263,567 265,166,163

Issued Credits 265 197 171 633

Avergare Rate % 11.58 10.36 11.6 11

Amount of Issued 74,595,000 65,725,000 47,865,000 188,185,000 Credits

Credit Repayment, % 95.2 99.9 97.6 97.5

Micro-credit Agency 11 7 8 26 Employees

Jobs Created as part of 174 190 170 534 the MCA Projects

All mandatory payments 2,697,609 2,083,732 1,412,006 6,193,347 to the country's budget

Net Profit 5,809,300 2,822,200 2,309,217 10,940,717

Donations and Charitable Support Main priorities in providing In addition to our sustainable community development donations: programs, we provide one-off donations, usually in form of ■ Socially significant projects; equipment or services. We receive many requests for support ■ Sports and sporting events; from across the country. Donation requests and proposals are reviewed on a monthly basis by our donations committee ■ Environmental activities and initiatives; consisting of the company management representatives ■ Projects and events initiated by young people; under the chairmanship of the KGC president. All donation ■ Support for socially vulnerable groups; applications are reviewed to approve they meet the ■ Educational and cultural events. selection criteria specified by our Corporate Donations and Sponsorship Policy and Company procedures. KGC conducts In 2019, the Donations Committee reviewed 292 applications, follow up monitoring visits on a regular basis to ensure that of which 67 were supported. the donations are used for the intended purposes. See the infographics on next page for the applications review mechanism, which is also available online in our web-site.

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 99 7. MINE CLOSURE

The current mine plan indicates that gold production of KGC will cease in 2026.

As outlined in the Environmental Management Action All CCPs have been previously submitted to the relevant Plan (EMAP), KGC is required to update the Conceptual Kyrgyz regulatory agencies for their information. Closure Plan (CCP) for the operation every three years, and complete a Final Closure Plan (FCP) two years prior to The 2019 update to the CCP is based on the 2015 NI closure. 43-101 Technical Report, and incorporates new data and information, changes to the facilities, an analysis of closure This approach allows for a period for testing and risks, and changes to the environmental and social context monitoring of several years to evaluate the various options of the project. The primary closure consideration will be the provided by the CCP, and time to consider any changes long-term stability of the TMF and the waste rock dumps. to the environmental, regulatory and social environment Key changes to the 2019 CCP update include the following: that may have occurred over the life of the mine. KGC has been preparing CCPs since 1999 with the most recent CCP • Waste Rock Dumps (WRD) configuration - this in 2019, covering the existing components of the Kumtor CCP update includes updated dump configurations operations including the open pits, waste rock dumps, predicted at the end of mining by Institute of tailings management facility and related water treatment Geomechanics and Mineral Resources of Kyrgyz facilities, and the Mill complex and associated mine National Academy of Science (IGMR) (2017, 2019). infrastructure. Because of the movement on the dumps highly irregular dump surfaces will exist at closure and this Closure and land use objectives of KGC: CCP assumes that surface regrading will be required to blend the dumps into the surrounding topography. ■ materially comply with regulatory requirements; • New facilities - closure actions for several new ■ minimize residual environmental impacts; facilities constructed since the 2016 CCP were incorporated. ■ ensure mine site features are geotechnically stable; • - this 2019 CCP builds ■ Socioeconomic transitioning ensure the protection of public health and safety; on the social and socio-economic context of the ■ return the land to suitable post-mining land use; Kumtor mine closure. ■ identify and mitigate social risks/impacts on the community, the business and the overall success of the closure process.

100 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 7.1. TAILINGS MANAGEMENT FACILITY (TMF) CLOSURE

Earlier CCPs have used a 100-yr/24-hr storm event plus • Placement of the final cover on top of TMF, and on 50% as the design event for the TMF spillway system. The the final slopes of the containment embankment; 2016 CCP update conservatively used a probable maximum • flood (PMF) as the design storm event for the TMF spillway Construction of the water management system, design. The updated CCP uses the PMF design event. which will include the final spillway to convey water both from the TMF and its watershed; The post-closure land use chosen for the TMF is industrial • because of the potential hazards that could exist after Demounting and reclamation of the Effluent Treatment Plant; closure for agricultural or wildlife habitat use. Therefore, the primary objective of the TMF cover is to limit erosion and • Reclamation of the industrial and hazardous waste preclude dust generation to reduce the risk of exposure facility. to tailings by wildlife and grazing animals. Based on this objective, the cover design includes a single layer of crushed The cover will comprise a single 300 mm layer of waste gravel. rock crushed in the grinding circuit. The cover material will be conveyed to the TMF via the existing tailings deposition Reclamation of the TMF will begin with growth media system. A network of causeways will be constructed across placement on the outer embankment. Following the the surface of the TMF to facilitate distribution of the cover completion of processing additional actions will begin in material. 2026 including the following actions: The downstream embankment of the TMF will be covered with alluvial and topsoil material and reseeded. A water management system around TMF will ensure that all the surface water from TMF and its catchment area is conveyed into the spillway diversion ditch located on native ground along the northwest edge of TMF.

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 101 7.2. WASTE ROCK DUMP CLOSURE

Waste rock dump creep resulting from movement in glacial dump as needed to blend the slopes into the surrounding till beneath the dumps was used to update predictions on topography. Select areas of the waste rock dump will then future dump footprints. be revegetated using approximately 300 ha of soil/alluvium “islands,” primarily focusing on the south-facing portions of The current movement creates a rough dump surface with the dumps. overall slope angles much shallower than the constructed slopes of the dump. Therefore, major slope regrading Water discharging from the pits will be collected and will not be necessary. Instead, once the movement has conveyed in lined, riprapped engineered channels adjacent stopped, general recontouring will be performed over the to the northern edges of the dumps and natural ground.

7.3. POST-MINING LAND USE

The primary objective of the Kumtor reclamation and To prepare a more complete assessment of post-closure revegetation process is to bring the land back to its former land use for this update KGC also considered the KR use as high alpine wildlife habitat, free of unusual hazards. Regulation “On land reclamation (recovery) and order of However, the diversity of conditions across the site and land return for land use” as a basis of defining achievable variety of closure methods that must be used for different and sustainable post-closure land uses. The proposed post- facilities requires that the post-closure condition of each closure land uses for the site are shown in Table 7.1. facility be considered separately when selecting a post- closure land use. This is considered good industry practice and will typically result in a variety of post-closure land uses across the site.

7.1 Post-closure land use for project components Facility Post-closure land use

Open Pit Lake

Industrial (consistent with the 'construction' land TMF use category defined by KR legislation)

Waste Rock Dumps Local wildlife habitat

Wildlife research center to monitor wildlife in Camp the region and the neighboring Sarychat Eertash Nature Reserve

Roads to Camp and Nature Reserve Access to wildlife research center

Part of the infrastructures (including high voltage Infrastructure power line, roads, and culverts) will be part of wildlife research center.

Rest of infrastructure will be decommissioned.

102 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 7.4. SOCIO-ECONOMIC IMPACTS OF MINE 7.2. WASTE ROCK DUMP CLOSURE CLOSURE

Closure of the Kumtor mine will have local and national The Kumtor mine and its upcoming closure affect a wide economic and social impacts. range of stakeholder in KR with varying levels of impact. The social baseline of communities in areas surrounding Table 7.2 is a summary of those affected and the key issues the mine was characterized by primary data collection surrounding each stakeholder group. and secondary data review. This included aspects related to social welfare, social change, population movement, community cohesion, social conflict, poverty levels, vulnerability, and of communities.

7.3. POST-MINING LAND USE

7.2 Stakeholders and key issues Stakeholder Group Key issues Compensation and working environment, support Employees of family Revenue from Kumtor, current and future capacity Suppliers for non- Kumtor business Social programs and infrastructure supported Issyk-Kul Region: Balykchy, Ton, Jety-Oguz Residents by Kumtor, livelihoods of resident employees, contractors and suppliers, tax revenue Environmental and technical closure issues. KR State Agencies Responsible for sign-off on closure plan. Revenues from Kumtor – tax receipts and refinery KR Public Sector (including KyrgyzAltyn) payments Ways to maximize the impact of Kumtor’s Non-governmental organizations (NGO) contributions prior to closure General Public Social programs supported by Kumtor’s payments to government

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 103 Reduction in GDP The trade balance and current account should decline after 2022, as the share of gold in export value is predicted KGC gold sales will remain at approximately current levels to decline from 40.6% in 2022 to 31.9% in 2024 and the until 2022 and decline sharply thereafter by 40-50% per current account balance is expected to return to 9% of GDP annum. In the last year of operation (2026), gold sales are over the medium term. Therefore, gross official foreign expected to be ~15% of current (2019) sales volumes. As a exchange reserves would fall to three months of imports in result, the IMF projects slowing of GDP growth to 3.4% in 2024, a level considered just adequate by the IMF. 2023 and 2024, which underperforms projected non-gold real GDP growth of 4.4%, held back by projected negative Loss of local government income growth in gold GDP of -15%. from Issyk-Kul Development Fund Loss of government revenue contributions Taxes paid by KGC, which contribute considerably to In 2022, KGC’s contributions to the IKDF are expected national and local government income, will decline sharply to decline in each subsequent year by around 40 - 50%. after 2022. In the last year of Kumtor Mine’s operation Although KGC’s contribution to the IKDF varies over time, (2026), direct tax payments are expected to be ~13% of the reduction and eventual end of payments is expected to current (2019) payments generated by KGC. The overall significantly impact the regional administration’s funds and impact on fiscal revenue will be larger than the loss of ability to maintain projects currently funded using these KGC’s direct tax payments, as indirect charges such as contributions, especially if these include operating costs for VAT and taxes paid by KGC’s suppliers will also decline. standard municipal services, as has been suggested. The The IMF projects that provide public revenue will decline Issyk-Kul government has grown increasingly concerned slightly as a percentage of GDP from 2022, primarily driven about the future of the IKDF, and the administration and by an equivalent decline in tax revenues. As GDP growth KGC are engaged in joint efforts to develop mechanisms is expected to decline from 2023, the decline in actual that ensure some of the IKDF contributions remain fiscal revenue is more pronounced. The IMF also expects, available for allocation after closure of Kumtor Mine, e.g. however, that the general government fiscal deficit will through loan agreements and redirecting funding to more not exceed 3% of GDP after 2020 due to a draft fiscal rule sustainable and profit-oriented projects. presently considered by parliament that caps debt at 70% of GDP and the budget deficit at 3% of GDP, requiring fiscal Loss of direct employment and tightening. income opportunities and increase Increase in trade and current in unemployment account deficits Approximately 3,500 people are currently employed or contracted at KGC will eventually lose their jobs with Increased remittances and gold exports - almost entirely the closure of Kumtor Mine. Contractor staff numbers from KGC’s operations - have shored up the current account will reduce at an approximately even rate over the balance, foreign exchange reserves and national currency. remaining LoM, while the number of full-time employees

104 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 will experience a sharp decline in 2024. In the final year Economic impact of sudden of operation, KGC is expected to employ 192 full-time staff and 27 contractor staff. As three quarters of current closure employees and contractor staff are from Issyk-Kul, the In the event of a sudden and unexpected (early) closure impact of retrenchment will be more intense at a local of the Kumtor Mine, all economic benefits associated level and significant relative to the 4,197 people registered with the mine would cease more suddenly than under the as unemployed in Issyk-Kul in 2017, assuming none of planned closure scenario, and total KGC contributions over the former KGC employees obtain new jobs. However, the actual direct effect on unemployment is expected to be much smaller, since the reduction in the workforce is gradual and the KGC workforce is relatively well trained and expected to have a competitive advantage in the local or national labor market, with new mines under development. Loss of indirect employment and income opportunities due to loss of procurement The closure of the Kumtor Mine will also indirectly affect employment at Kyrgyzaltyn (which receives fees and refines the Kumtor Mine’s gold at the Kara-Balta gold refinery) the LoM would be lower. The significance of the economic and at suppliers to Kumtor Mine. The impact of the Kumtor impacts would be higher, as there would be an unbudgeted Mine closure on the Kara-Balta refinery will depend shortfall in fiscal revenue (potentially resulting in a higher on whether supply by Kumtor Mine can be sufficiently budget deficit and public debt), unexpected decline in replaced; there is currently insufficient information to export earnings (leading to potential shortages in foreign quantify this. Local procurement, approximated as 30% exchange reserves and a higher trade deficit and current of OpEx, is expected to be between US$20 million and account deficit), less time to build a sustainable IKDF, US$30 million for most of the closure period, and drop to sudden retrenchment of a relatively large workforce and US$ 12 million in 2026. More than 600 Kyrgyz-enterprises loss of local procurement (affecting ~600 local suppliers). supply the Kumtor Mine operations. These might employ some as many as 7,000 people. Continued viability of and employment at these suppliers after closure of the Kumtor Mine will depend on whether they identify alternative markets for their products in time. KGC has made it a policy to encourage suppliers to broaden their customer base as much as possible. Other mines currently under exploration or development may be able to replace some of the KGC’s local procurement demand.

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 105 7.5. SOCIAL IMPACTS OF MINE CLOSURE

KGC employees lack financial education and would benefit Access to services and facilities from personal financial education, budget planning, savings The mine closure could place additional burden on the KR etc. Approximately 80% of Kumtor Mine employees have Government in terms of managing infrastructure within loans, which amount to about US$7.8 million. With the the affected regions (i.e. roads, electric grid, health services, closure of the mine and associated employment cuts, many housing). The IKDF provides for large scale support of local of these debts may not be fully paid, and this will further self-government in the Jeti-Oguz and Ton Regions. Financial lead to additional debts for employees, and no income to resources received in the local government budget from the service the debt. IKDF play an important role and make up a significant share of the local budget. Local governments fully finance state Out-migration and loss of skilled and municipal services provided to the population in the local budgets due to these revenues. professionals Local governments of the Jeti-Oguz and Ton Regions With lack of opportunities in the area, the majority of understand the scale of assistance received from KGC for employees are likely to relocate to the nearby towns, socio-economic development of the region. They are fully such as Bishkek, while some might choose to relocate to aware of the risks associated with closure of the mine and Russia and Kazakhstan. Out-migration is characterized try to take various preventive measures to mitigate the by the outflow of highly skilled and productive labor. consequences. However, despite public awareness raising While obtaining a job out of the country might assist with campaigns implemented by KGC, communities are poorly continued livelihoods for employees and their dependents informed about the various ways in which KGC promotes through remittances, it might also lead to the breakdown of the development of social and physical infrastructure. social networks.

Social effects of loss of Reduced contributions to employment and reduced support community development to employees programs During the cessation of mining and closure of the As mentioned above, KGC is involved in community operations, surrounding businesses will lose income due development through several social investment programs. to the loss of employment or redeployment of employees/ The closure of Kumtor Mine will lead to no further contractors, as well as the reduction of local purchases contributions towards programs for the youth, unemployed made by the mine. This will result in a loss in buying power and women, local farmers, and learners. These groups will for the surrounding businesses. be the most impacted by the scaling down of support by KGC. Information received from discussions with Trade Unions at Kumtor Mine highlighted the issue of employee indebtedness.

106 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 In addition to this, it is very likely that impacts to closure, that under planned closure would have taken infrastructure maintenance, quality of services, inputs into a number of years for them to process, will have to be local development programs will also be experienced in the dealt with within a shorter period of time, taking away local regions, leading to further livelihoods impediments in the opportunity to consider and to re-adjust to their the area. Because the programs are managed internally by new realities. Experience has also shown that in such KGC, with some of the projects co-financed by donors and circumstances, beneficiaries turn back to the mine when municipalities, it will be difficult for these to be transferred their money is finished, to make more demands, which once the mine closes. Furthermore, municipal enterprises sometimes lead to reputational damage. established to assist with social infrastructure maintenance in villages, are supported by KGC. Lack of funding from KGC after closure may lead to the decline of social facilities. Socioeconomic Transitioning Plan The mitigation plan provides actions required for mitigating Personal and family impacts the risks, monitoring, review and people responsible for implementing the actions. However, the Socio-economic The impacts of the Kumtor Mine closure on the women and Transition Mitigation Plan (STMP) serves as a guideline youth will lead to a reduction of economic activities in the and highlights key actions, some of which are not fully local areas. This will most likely lead to increased poverty dependent on KGC, but on other players such as the KR levels and vulnerability, decrease in wellbeing and the Government, communities, employees, etc. general quality of life, and anxiety. Due to their vulnerability status, additional support may be required. Reportedly Financial planning for the implementation of the actions is previous job losses at the Kumtor Mine have led to social also important in order to achieve the closure objectives. issues such as divorces and alcoholism and family violence. However, the costs in the STMP exclude ongoing Human If not properly managed, this trend will continue to increase Resources related matters such as wages and salaries as with the closure of the mine. well as current expenses for engagement and community development and support. Improved environment and access to eco-system services Almost one third of survey respondents believed that mine closure will lead to improvement in the environment and public health. Although this impact is deemed to be Low (positive), it can be enhanced through mitigation to a Moderate (positive) impact. Social impacts of sudden mine closure In the event of a sudden and unexpected closure of the Kumtor Mine, all benefits associated with the mine and listed above would cease suddenly. As mentioned previously, employees and contractors will be the most directly impacted stakeholders. The shock of sudden

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 107 7.6. CLOSURE COSTS

In preparation of the reclamation and closure cost estimate, The total closure and post-closure cost estimate for the the Standardized Reclamation Cost Estimator (SRCE) Version project is US$58.7 million, with the largest costs being 1.4, developed in the state of Nevada, USA and verified by associated with tailings (US$20.5 million), waste rock dumps the U.S. Bureau of Land Management, has been used to (US$7.5 million), pits (US$6.1 million), water treatment estimate quantities and hours corresponding to reclamation (US$5.6 million), general and administration costs (US$6.0 and closure activities based on first principles and million), and monitoring and maintenance (US$3.5 million). productivities per the Caterpillar Performance Handbook Of this total, approximately US$1.3 million will be spent Edition 35 (Caterpillar, 2004) and RS Means Heavy during the 5-year post-closure period for monitoring and Construction Cost Data (RSMeans 2015) as applicable. inspections. Most of the equipment and labor rates are based on The methodology used, correction factors applied, and current KGC costs. Where equipment for a certain activity is input parameters selected result in this estimate being not available on site, the cost estimate assumes the use of conservative. This is a common practice for conceptual contractors based on previous work contracted by KGC. closure plan cost estimates and limits the need for arbitrarily applied contingencies. Because the cost estimate is based on a conceptual plan, a number of assumptions related to the LOM closure costs are necessary. Key cost assumptions include the following: Current Obligations • final footprints of waste rock dumps In addition to the LOM closure cost estimate, KGC also prepared an assessment of its current obligation. This is • diversion channels to manage water collected in the based on the configuration of the site as of December 31, catchments of the TMF, pits and waste rock dumps. 2019 and applies the commitments made in the CCP to that configuration. This is consistent with methods used for • diversion channels to manage water collected in the financial reporting of Asset Retirement Obligations (ARO) catchments of the TMF, pits and waste rock dumps. under International Financial Accounting Standards (IFRS). • buildings not identified for a post-mining land-use. The methodology and assumptions are the same as those used for the LOM estimate; however, there are • monitoring of water quality and geotechnical stability differences relating to facilities that have yet to reach their final configuration. For example, the current TMF covers LOM Closure Cost a smaller area than the LOM TMF will, and therefore, the amount of cover required would be less. The ARO for end- Closure cost estimates include closure activities that of-year 2019 is estimated at US$54.9 million. will primarily be completed within a five-year period following the cessation of operation, but some activities such as placement of growth media on the outer tailings embankment and closure planning will occur before the closure period begins in 2027. An additional five-year period will extend post-operational monitoring to ten years beginning in closure year 1.

108 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 7.6. CLOSURE COSTS

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 109 GLOSSARY AND ABBREVIATIONS

Albedo - is the coefficient of spectral whiteness Cyanide - A chemical compound containing carbon and (reflection) of surface used as a key parameter in nitrogen used to dissolve gold from ore. climate surveys to estimate the Earth’s energy budget, Derived Air Concentration (DAC) - A derived limit on radiation transfer in earth-atmosphere system and 3 glacier balance. the activity concentration in air (in Bq/m ) of a specified radionuclide - calculated such that a typical worker, ARD - Acid rock drainage is a term used to describe breathing air with constant contamination at the DAC the outflow of mine waters that have been acidified by while performing light physical activity for a working contact and exposure to rocks, reducing the pH levels year, would receive the annual limit on intake for the which, in turn, can release and mobilize metals into the radionuclide in question. environment. EBRD - European Bank for Reconstruction and Biodiversity - Short for “biological diversity,” the Development. variability among living organisms and the ecosystems of which they are part. This includes diversity within Economic Value Retained - Component of GRI species, between species, and within ecosystems. Economic Indicator EC1 and calculated as economic value generated less economic value distributed (see BMY - Balykchy Marshalling Yard. also www.globalreporting.org for further details). CAP - Change Acceleration Process. EITI - Extractive Industries Transparency Initiative. Capacity Building - Activities and initiatives that EMAP - Environmental Management Action Plan. strengthen the knowledge and skills of individuals and improve structure and processes such that communities Engagement - A process of contact, dialogue, and can grow and develop in a sustainable way. interaction that ensures all parties of interest are informed and participate in decisions that affect their CCP or MCP - Conceptual Closure Plan (see also future. Closure Plan). Environmental Assessment -The process of CG - Centerra Gold Inc. identifying, predicting, evaluating, and mitigating the biophysical, social, and other relevant effects of CJSC - Closed Joint Stock Company. development proposals prior to making major decisions Closure Plan - A plan designed to ensure public safety and commitments. and restore the physical, chemical, and biological quality Environmental Incident - An event that has caused of the area disturbed by mining to an acceptable level. or could cause environmental harm. Ranges in scale It must aim at leaving the area in such a way that the and severity from Type I (Insignificant) to Type V rehabilitated property does not become a burden to (Catastrophic). society after the mining operation is over. Environmental Management System (EMS) - A Code of Ethics - A policy that sets out Centerra’s framework developed by an organization to help dedication to upholding high moral and ethical improve its environmental performance by taking standards and specifies basic business conduct and environmental considerations into account when behaviour. making decisions and managing risks.

Collective Bargaining Agreement - An agreement ETP - Effluent treatment plant. between a company and one or more workers’ organizations or, in absence of such organizations, First Aid Injury (FA) - A work related injury that the representatives of the workers duly elected and requires first aid treatment. authorized by them in accordance with national laws and regulations. GDP - Gross Domestic Product.

Corporate Responsibility - A form of corporate self- GHG - Greenhouse gas - Emissions commonly reported regulation integrated into a business model where as CO2 equivalents (CO2e). companies embrace the responsibility forth impact GIIP - Good International Industry Practice. Defined in of their activities on the environment, consumers, the International Finance Corporation Environmental, employees, communities, and stakeholders. Health and Safety Guidelines for Mining as “the exercise Currencies - Kyrgyz som (KGS): 2019 average exchange of professional skill, diligence, prudence and foresight rate 1 USD = 69.84 KGS. that would be reasonably expected from skilled and

110 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 experienced professionals engaged in the same type of LTI Severity Rate - Number of days lost to injury undertaking under the same or similar circumstances x200,000/hours worked. globally. The circumstances that skilled and experienced professionals may find when evaluating the range of MAC - Maximum allowable concentration standards pollution prevention and control techniques available which apply at KGC’s surface water quality compliance to a project may include, but are not limited to, varying point (referred to as W.1.5.1) downstream of the Kumtor mine. levels of environmental degradation and environmental assimilative capacity as well as varying levels of financial MAD - Maximum allowable discharge standards which and technical feasibility.” apply to treated effluent discharges from the effluent treatment plant and the sewage treatment plant. Global Reporting Initiative (GRI) - A global network based organization that has developed a widely MAE - Maximum allowable emission standards which used sustainability reporting framework consisting of apply to airborne emissions from Kumtor. principles and indicators to measure and report on an organization’s economic, environmental, and social Materiality - The threshold at which an economic, performance (see also www.globalreporting.org for environmental or social issue or indicator becomes further details and definitions of the GRI framework and sufficiently important that it warrants disclosure in the indicators). corporate responsibility report.

Governance - A set of processes, customs, policies, Medical Aid (MA) - A work related injury or illness that laws, and institutions affecting the way a company is requires medical treatment administered by an off-site directed, administered, or controlled. physician or by a registered medical personnel. Site and company medical advisors are to be consulted and Hazard - A source of potential damage, harm, or a final decision as to how a medical aid injury is to be adverse effects on something or someone under certain managed will be determined by the company medical conditions at work. team in consultation with senior site management.

HSE - Health, Safety and Environment. Millimeter/Millimetre (mm) - International System unit of length, 1000th of a metre. ICMI - International Cyanide Management Institute. NGO - Non-Governmental Organization, a not-for- IFC - International Finance Corporation, a member of profit group largely funded by private contributions the World Bank Group. and operating outside of institutionalized government or political structures. NGOs focus on environmental, ISO - International Organization for Standardization, social, and economic issues at local, regional, national the world’s largest developer of voluntary International and international levels. Standards. Near Miss - An event not causing harm, but has the ISO 31000 standard- Standard developed by ISO potential to cause injury. Technical Management Board Working Group. Oblast - Administrative division, which in English IWP & HP - Institute of Water Problems and translates as province or region. Hydropower. OJSC - Open Joint Stock Company. IUCN - International Union for Conservation of Nature. Open Pit - A mine where the minerals are mined JSC - Joint Stock Company. entirely from the surface. KR NAS - Kyrgyz National Academy of Sciences. Ore - A naturally occurring solid material (usually rock) from which a metal or valuable mineral can be extracted KGC - Kumtor Gold Company. profitably. Local Suppliers - Suppliers based in the same country QA/QC - Quality assurance and quality control program as the operation that they supply. for collection, handling, and analysis of samples to Lost Time Injury (LTI) - A work related injury resulting ensure a consistent approach and accurate results. in the employee being unable to attend work on the Reclamation - The restoration of a site after the next calendar day after the day of the injury. If a suitably completion of mining or exploration activity. qualified company medical professional advises that the injured person is unable to attend work on the next Reportable Injury - The sum of the number of Medical calendar day after the injury, regardless of the injured Aid Injuries and Lost Time Injuries in a given period. person’s next rostered shift, a lost time injury is deemed to have occurred. Site and company medical advisors will determine when a lost time injury is no longer recorded as a lost time injury. This includes fatalities. LTI Frequency Rate - Number of LTIs x200,000/hours worked.

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 111 Reportable Injury Frequency Rate (RIFR) - Number STP - Sewage Treatment Plant. of Reportable Injuries per 200,000/Hours Worked Responsible Mining - A comprehensive and transparent Sustainable Development - As used in the report Our minerals activity that respects the rights of all Common Future (also known as the Brundtland Report): stakeholders, especially those of local people, operates “Sustainable development is development that meets safely, protects the environment, minimizes the impact the needs of the present without compromising the on human health, embraces the best international ability of future generations to meet their own needs” practices, and upholds the rule of law while generating (see also Corporate Responsibility). Kumtor develops benefits for host countries (see also Corporate mineral deposits in a manner that does not restrict Responsibility). communities’ efforts to sustain themselves and strives to catalyze economic activity that promotes long- Restricted work injury- Temporary transfer to lighter term sustainability among our communities and their work. surroundings.

SAEL - Stewart Assay and Environmental Laboratories Sustainability - An approach to decision-making LLC (part of the ALS international group of laboratories), that integrates economic, environmental, and social located in Kara-Balta, Kyrgyz Republic. considerations (see also Corporate Responsibility).

SAEPF - State Agency of Environment Protection and Tailings - The material that remains after recoverable Forestry. metals or minerals of economic interest have been SCER - Sarychat-Eertash Reserve, a strictly protected removed from ore through milling. Zapovednik neighbouring Kumtor Concession. Threshold Limit Values (TLV) - The level/ Sometimes referred to as SCEZ, with Zapovednik concentration of a chemical substance to which it is replacing Reserve. Zapovednik is a work of Russian believed a worker can be exposed day after day for a origin meaning protected wilderness. working lifetime without adverse health effects.

SEDAR - System for Electronic Document Analysis and TMF - The Tailings Management Facility is the Retrieval. combination of infrastructure to hold and manage Significant Spill - Any spill that is Level III or higher, as semi-liquid tailings so as to avoid negative health defined by Centerra’s incident reporting system, Level III and environmental impacts, consisting of delivery spills are significant enough that they must be reported infrastructure, storage ponds, holding dam, water and to Centerra’s Board of Directors. waste treatment facilities, and discharge facilities for treated effluent. SME - Small or medium sized enterprise, referring usually to small businesses. Definitions vary, but TSP - Total suspended particulates. typically they have less than 50 employees. USD - US Dollars. Stakeholder - Any person or group of people who WTP - Water Treatment Plant. may be affected in a good or bad way by the financial, safety, environmental, and social aspects of our operations and those who have an interest in or an influence on our activities.

Stakeholder Engagement -The communication with stakeholders, through various means, to find out what social and environmental issues matter most to them, with a view to a company improving decision- making and actions to address these concerns.

112 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 PERFORMANCE DATA

Economical and operational indicators Major consumables, tonnes 2017 2018 2019 2017 2018 2019 Gold produced, oz 562,749 534,563 600,201 Cement & lime 10,264 9,719 7,981 KGC's share in KR GDR % 9.7 8.6 9.8 Reagents & chemicals 11,611 12,174 12,109 KGC's share in the aggregate indus- 21.1 18.4 20.8 Grinding balls 11,389 11,759 12,375 trial output, % Diesel (x1000 litres/yr) 124,652 140,262 124,455 Explosives 32,200 29,789 23,029

Local procurement in context Direct economic value generated and distributed1 2017 2018 2019 2017 2018 2019 Total Payments for Goods 266,126,258 317,703,765 285,090,753 Revenues from gold sales 685,163,279 660,058,489 827,537,641 and Services 2 Other income 4,069,740 1,126,089 2,302,370 Local Payments for Goods 60,385,333 81,176,660 70,760,657 Operating costs 206,804,840 222,831,431 209,404,804 and Services 3, 5 (Goods and Services) Local Payments for Goods 23 26 25 Corporate administration costs - - - and Services as% of Total Exploration costs 6,090,617 11,302,849 Capital expenditure 4 78,745,280 60,429,073 54,642,620 Environmental performance indicators Other operating costs 2,469,333 3,097,024 12,155,184 2017 2018 2019 Employee and contractor 117,237,524 117,800,253 120,699,331 Direct energy consumption, GJ wages and benefits Diesel, litres/yr 124,651,982 140,262,495 124,455,262.00 Taxes and royalties 400,000,000 100,000,000 188,000,000 Retrol, litres/yr 395,842 466,989 629,365 Payments to providers of funds 96,729,304 92,988,345 116,416,807 Explosives, tonnes/yr 32,698 29,789 23,029 Community donations and 1,035,343 2,603,835 1,644,367 Indirect Energy Consumption, GJ investments Electricity, GJ/yr 1,041,539 1,045,065 1,034,446.76 Payment to Cancer Support 7,000,000 Electricity, MWh 289,316 290,296 287,346.32 Fund 6 Direct GHG Emissions 340,525 382,028 338,884 Payments to Nature Development 61,100,000 (Scope 1) tonnes CO e Fund 6 2 Indirect GHG Emissions 25,279 25,114 25,104 Payments to Social Partnership for 5,951,665 (Scope 2) tonnes CO2e Regional Development Fund 6 GHG intensity ratio, 0.65 0.76 0.61

Economic value retained (220,788,605) 55,344,000 48,108,760 tonnes CO2e/oz gold

Notes: 1. Data has been prepared on an accrual basis and non-cash costs have been omitted. 2. Other income includes income from financial investments, sale of assets, and other services. 3. Includes capitalized overburden stripping costs. 4. Excludes capitalized overburden stripping costs. 5. Includes by-product sales (silver). 6. Payments to the Nature Development Fund, Cancer Care Support Center and Social Partnership for Regional Development Fund are made in accordance with the Strategic Agreement signed among the Government of the Kyrgyz Republic, Centerra Gold Inc, Kumtor Gold Company CJSC and Kumtor Operating Company CJSC as of September 11, 2017, and as part of the unilateral obligation of Kumtor Gold Company CJSC as of August 7, 2019.

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 113 Kumtor mine emissions. tonnes/year Water Use and Treatment. mil m3 MAE 2017 2018 2019 Pollutant Standard Actual 2019 Raw water used at Mill (from Petrov Lake) 5.03 4.91 4.95 2019 Total water used at Mill 6.17 6.45 6.44 (Petrov Lake + Pit water) Dust that contains SiO2 20-70% 689.8808 584.0288 Hydrocyanide (hydrogen cyanide) 0.0026 0.00014 Water internally recycled at Mill 6.19 8.06 7.99 Sodium hydroxide (sodium hydrate) 0.054513 0.05081 Ore Feed to Mill 6.25 6.33 5.97 Calcium oxide dust (lime) 2.4135 2.0487 Raw Water Intensity Ratio 805 776 829

Carbon (soot) 2.1175 1.3595 Process water fro drilling exploration opera- 0.23 tions (Petrov Lake) Lead and its inorganic compounds 0.000565 0.000666 Water used for dust supression Sulfur dioxide 15.02429 12.2179 Water used for dust suppression 0.05 0.11 0.04 Welding aerosol 0.5053 0.4408 (from Petrov Lake) Manganese oxide 0.0688 0.0598 Water used for dust suppression 0.77 0.75 0.95 Hydrofluoride (hydrogen fluoride) 0.0593 0.0518 (from Pit water) Hydrocarbon 15.14902 11.29739 Wastewater discharged to environment Nitrogen dioxide 143.4017 94.4088 Treated wastewater discharged from ETP 4.75 4.58 5.99

Carbon oxide 67.0756 49.1953 Treated wastewater discharged from STP 0.10 0.13 0.13 Tetrafluorosilane (fluorides) 0.0222 0.0199 Net water usage 0.36 0.46 -0.72 Ammonia 1.2834 1.7941 Silicon compounds 0.0222 0.0199 Social performance indicators Hydrochloride (hydrogen chloride) 0.0061 0.0224 2017 2018 2019 - Nitrogen oxide 0.1154 Training Hours by Gender - Hydrocarbons (as kerosene) 2.2164 Average hours per year 46.31 30.61 36.90 0.3098 Formaldehyde 0.4563 Total Employee Training Hours 127,999 104,258 102,882 0.000032 Benzpyrene 0.00004224 Total Number of Employees 2,764 2,767 2,788 0.0188 Ammonium nitrate 1.677 Average/Female Employee 21.16 21.28 21.34 0.0522 Carbon dust 0.0552 Total Female Employee Training Hours 7,386 7,279 6,765 0.7201 Suspended solids 0.2418 Total Number of Female Employees 349 342 317 37.2973 Carbon dioxide 36.424 Average/Male Employee 49.94 39.99 38.90 795.4149 Total 978.27353 Total Male Employee Training Hours 120,614 96,979 96,117 Total Number of Male Employees 2,415 2,425 2,471 Waste management, tonnes Training Hours by Employee Category 2017 2018 2019 Average/Senior Management 34.15 61.23 57.84 Industrial waste - total (tonnes) 10,052 6,751.2 5,412.45 Total Training Hours Provided 1,400 2,388 2,140 Hazardous waste - total (tonnes) 545 459.7 407.471 to Senior Management Hazardous waste - recycled (tonnes) * 817.9 855.6 580.9 Total Number of Senior Management 41 39 37 Waste Tires 947.8 1,176.3 1,079.006 Average/Middle Management 45.06 35.16 41.46 Note: 10 tons of used batteries, including those remained from previous years, are Total Training Hours Provided 12,934 9,775.5 12,271 temporarily stored at the mine. In 2019, 1,079 tons of used tires were generated, to Middle Management 1,039,006 tons were transferred for recycling. 280 tons of used batteries, including those remained from previous years, are temporarily stored at the rime. Total Number of Middle Management 287 278 296 Average/Funtional Employee 46.66 37.59 36.04 3 Water Use and Treatment. mil m Total Training Hours Provided 113,665.5 92,094 88,470.5 2017 2018 2019 to Funtional Employees Sources of Water Total Number of Funtional Employees 2,436 2,450 2,455 Total Water Extracted from Petrov Lake 5.21 5.17 5.41

Pit water pumped to the Mill 1.14 1.54 1.49 Pit water pumped to the environment 29.24 25.17 27.11 Water used for Domestic Purposes Water Used for camp domestic purposes 0.13 0.14 0.15 Water Used for Mill domestic purposes 0.02 0.02 0.02 Water Used for lower zone 0.03 domestic purposes Water used for process/Mill

114 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 Social performance indicators Employee demographics 2017 2018 2019 2017 2018 2019 Health and Safety Standard national entry level wages and those paid by Kumtor Annual medicals 2,870 2,633 1,960 Kyrgyz minimum wage per hour 7.14 10.06 10.58 Pre-employment medicals 334 162 115 Kumtor entry-level wage per hour 94.62 99.35 109.18 Total visits 38,709 37,607 34,357 Kumtor entry-level to Kyrgyz minimum wage 13 : 1 10 : 1 10 : 1 Reduction in overall vehicle accidents 14 17 5 Staffing at the Kumtor mine (as at Dec each year) Reduction in high-potential injury risk -light 1 2 0 vehicle accidents Kyrgyz national (Total) 2,627 2,596 2,591 In-pit heavy versus light vehicle collisions 0 1 0 -men 2,306 2,291 2,298 Injuries due to vehicle accidents 1 2 0 -women 321 305 293 Hours worked 5,882,917 6,334,208 6,518,416 Expat staff (Total) 66 45 40 Lost time injuries (LTI's) 1 4 2 -men 66 45 40 Restricted work injuries 1 2 0 -women 0 0 0 Medical aid 1 2 1 Full time staff Total (Kyrgyz + Expat) 2,693 2,641 2,631 First aid 13 9 4 -men 2,372 2,336 2,338 Days lost to injury 6,026 107 12,041 -women 321 305 293 LTI frequency rate 0.03 0.06 0.09 Contractors (Total) 947 850 830 LTI severity rate 205 3.38 369.45 Total staff (Full time staff + Contractors) 3,640 3,491 3,467 Total Reportable Injury Fraquency Rate 0.14 0.19 0.12 Proportion of Kyrgyz national 98 98 99 (TRIFR) as full time staff (%) Incidents w/Property camage 28 16 14 Total Number and Rates of New Employee Hires and Employee Turnover by Gender and Region Note: The number of lost days due to injuries with lost time incidents (LTI) for 2019 compared to 2018 is significantly higher, because in 2019 there were one lost time Bishkek 29 20 27 injury and one fatal incident involving deaths of two employees. In accordance with Bakykchi 5 5 3 international norms, an automatic calculation of 12,000 lost person-days due to a fatal incident (2 deaths, 6,000 days each) and 41 lost persons-days due to lost time injury Karakol 23 8 13 was made. Jeti-Oguz 65 23 48

Reportable injury frequency rate: KGC/Centerra vs peer group Ton 6 2 10 Other regions 11 24 33 Kumtor - 0.19 0.12 Women (from all) 27 5 13 Centerra - 0.47 0.44 Total 139 82 134 Peer group - 0.66 0.76 Employee turnover (%) 6.2 3.9 4.8 Return to work and retention rates after parental leave (female employees) Entitled to parental Leave 7 12 7 Returned -rom parental leave 10 10 12

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 115 GRI CONTENT INDEX

Economical and Operational Indicators

Indicator Description Omissions GRI 101: Foundation 2019 GRI 102: General Disclosures 2019 Organizational Profile 102-1 Name of the organization About Kumtor mine (p.2) - 102-2 Activities, brands, products, and services About Kumtor mine (p.2); Environment and Sustainability Snapshot (p.10- - 11); Economic Value (p.24) 102-3 Location of headquarters Contacts (p.123) - 102-4 Location of operations About Kumtor mine (p.2) - 102-5 Ownership and legal form About Kumtor mine (p.2) - 102-6 Markets served About Kumtor mine (p.2) - 102-7 Scale of the organization Environment and Sustainability Snapshot (p.10-11); Economic Value (p.24- - 25); Workplace Practices (p.34) 102-8 Information on employees and other workers Workplace Practices (p.32-33) - 102-9 Supply chain Local Procurement (p.26-29) - 102-10 Significant changes to the organization No significant change has been occured neither in company's - and its supply chain operational or financial structure nor supply chain; 102-11 Precautionary principle or approach Disclaimer Regarding Forward-Looking Statements (p.123) - 102-12 External initiatives Governance (p.14-15) - 102-13 Membership of associations Governance (p.14-15) - Strategy 102-14 Statement from senior decision-maker Message From the President (p.4-6) - Ethics and Integrity 102-16 Values, principles, standards, and norms Business Ethics (p.22-23), Values (p.13) - of behavior Governance 102-18 Governance structure Governance (p.14-15) - Stakeholder Engagement 102-40 List of stakeholder groups Stakeholder Engagement (p.91) - 102-41 Collective bargaining agreements Collective Bargaining (p.31) - 102-42 Identifying and selecting stakeholders Stakeholder Engagement (p.88-91) - 102-43 Approach to stakeholder engagement Stakeholder Engagement (p.88-91) - 102-44 Key topics and concerns raised Environmental Claims (p.15); Risk Management and Continuous - Improvement (p.18); Stakeholder Engagement (p.90-91)

116 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 Indicator Description Omissions Reporting Practice 102-45 Entities included in the consolidated About This Report (p.2) - GRI CONTENT INDEX financial statements 102-46 Defining report content and topic boundaries About This Report (p.2); Materiality Assessment (p.19-21) - 102-47 List of material topics Materiality Assessment (p.19-21) - 102-48 Restatements of information No restatements made in information given in previous reports. - 102-49 Changes in reporting About This Report (p.2) - 102-50 Reporting period About This Report (p.2) - 102-51 Date of the most recent report About This About This Report (p.2) - Report (p.2) 102-52 Reporting cycle About This Report (p.2) - 102-53 Contact point for questions regarding the report Contacts (p.124) - 102-54 Claims of reporting in accordance with the About This Report (p.2) - GRI Standards 102-55 GRI content index GRI Content Index (p.103-106) - 102-56 External assurance Disclaimer Regarding Forward-Looking Statements (p.123) -

Material Issues Omissions Indicator Description

Water Management GRI 103: 103-1 Explanation of the material topic and its Materiality Assessment (p.19-21) - - Management boundary Approach 2019 103-2 The management approach and its Governance Model (p.14); Sustainability Management - components (p.18); Risk Management and Continuing Improvement (p.18-19); Environmental Responsibility (p.42); Water Use and Treatment (p.72) 103-3 Evaluation of the management approach Governance Model (p.14); Risk Management and - Continuing Improvement (p.18-19); Environmental Monitoring (p.46-49) GRI 303: Water 303-1 Water withdrawal by source Water Use and Treatment (p.72-75) - - 2019 303-2 Water sources significantly affected by Water Use and Treatment (p.72-75) - withdrawal of water 303-3 Water recycled and reused Water Use and Treatment (p.72-75) - GRI 306: Effluents 306-1 Disclosure 306-1 Water discharge by Water Use and Treatment (p.72-75) - and Waste 2019 quality and destination Biodiversity GRI 103: 103-1 Explanation of the material topic and its Materiality Assessment (p.19-21) - - Management boundary Approach 2019 103-2 The management approach and its Governance Model (p.14-15); Sustainability Management - components -(p.18); Risk Management and Continuing Improvement (p.18-19); Environmental Responsibility(p.42); Biodiversity (p.50) 103-3 Evaluation of the management approach Governance Model (p.14); Risk Management and - Continuing -Improvement (p.18-19); Environmental Monitoring (p.46-49)

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 117 Indicator Description Omissions Biodiversity GRI 304: 2019 304-1 Operational sites owned, leased, managed Biodiversity (p.50-56) in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas 304-2 Significant impacts of activities, products, Biodiversity (p.50-56) and services on biodiversity 304-4 IUCN Red List species and national Biodiversity (p.56) - conservation list species with habitats in areas affected by operations Waste and Hazardous Material Management GRI 103: 103-1 Explanation of the material topic and its Materiality Assessment (p.19-21) - Management boundary Approach 2019 103-2 The management approach and its Governance Model (p.14); Sustainability Management - components (p.18); Risk Management and Continuing Improvement (p.18-19); Environmental Responsibility (p.42); Waste Management (p.62-64) 103-3 Evaluation of the management approach Governance Model (p.14); Risk Management and - Continuing Improvement (p.18); Environmental Monitoring (p.46-49) GRI 306: 306-2 Waste by type and disposal method Waste Management (p.64); Performance Data (p.100) Effluents and 306-3 Significant spills Environmental Incidents (p.17) Waste 2018 G4 Sector G4-MM3 Unprocessed Waste Rock (p.64); Tailings Management Supplement (p.66-68) Legal Compliance GRI 103: 103-1 Explanation of the material topic and its Materiality Assessment (p.19-21) - Management boundary Approach 2018 103-2 The management approach and its Governance Model (p.14); Sustainability Management - components (p.18); Risk Management and Continuing Improvement (p.18-19); 103-3 Evaluation of the management approach Governance Model (p.14); Risk Management and - Continuing Improvement (p.18-19) GRI 307: 307-1 307-1 Non-compliance with environmental Legal Compliance (p.16-17) - Environmental laws and regulations Compliance 2018 Ethical Conduct and Anti-Corruption GRI 103: 103-1 Explanation or the material topic and its Materiality Assessment (p.19-21) - Подход boundary к управлению 103-2 The management approach and its Governance Model (p.14); Sustainability Management - 2019 components (p.18); Risk Management and Continuing Improvement (p.18-19); Business Ethics (p.22-23) 103-3 Evaluation o-' the management approach Governance Model (p.14); Risk Management and - Continuing Improvement (p.16) GRI 205: 205-2 205-2 Communication and training Business Ethics (p.22-23) - Anti- about anti- corruption policies and Corruption procedures 2018

118 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 Indicator Description Omissions Fostering Local Economies GRI 103: 103-1 Explanation or the material topic and its Materiality Assessment (p.19-21) - Management boundary Approach 2018 103-2 The management approach and its Governance Model (p.14); Sustainability Management - components (p.18); Risk Management and Continuing Improvement (p.18- 19); Local Procurement (p.26-29) 103-3 Evaluation o-' the management approach Governance Model (p.14); Risk Management and - Continuing Improvement (p.18-19) GRI 201: 201-1 201-1 Direct economic value generated and Economic Performance (p.24-25) - Economic distributed Performance 2018 GRI 204: 204-1 204-1 Proportion of spending on local Local Procurement (p.26) - Procurement suppliers Practices 2018 Local Communities GRI 103: 103-1 Explanation of the material topic and its Materiality Assessment (p.19-21) - Management boundary Approach 2018 103-2 The management approach and its Governance Model (p.14); Sustainability Management - components (p.18); Risk Management and Continuing Improvement (p.18-19); Stakeholder Engagement(p.88-91) 103-3 Evaluation of the management approach Governance Model (p.14); Risk Management and - Continuing Improvement (p.18-19) GRI 413: Local 413-1 Operations with local community Stakeholder Engagement(p.88-91); Communities 2018 engagement, impact assessments, and development programs Occupational Health and Safety GRI 103: 103-1 Explanation of the material topic and its Materiality Assessment (p.19-21) - Management boundary Approach 2018 103-2 The management approach and its Governance Model (p.14); Sustainability Management - components (p.18); Risk Management and Continuing Improvement (p.18-19); Collective Bargaining (p.31); Health and Safety (p.38-41) 103-3 Evaluation of the management approach Governance Model (p.14); Risk Management and - Continuing Improvement (p.18-19) GRI 403: 403-2 Types of injury and rates of injury, Health and Safety (p.39) - Occupational occupational diseases, lost days, and Health and Safety absenteeism, and number of work-related 2018 fatalities 403-3 Workers with high incidence or high risk of Health and Safety (p.38-41) - diseases related to their occupation 403-4 Health and safety topics covered in formal Collective Bargaining (p.31) - agreements with trade unions

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 119 APPENDIX

Precipitation 2019 equivalent mm of water

Cumulative precipitation Monthly precipitation

350 333 324.8 328 300 302.7 282.6 250

200 206.1

150 139.1

103.8 100 67.8 76.5 50 17.1 27.7 40.1 67 4,6 12.5 22.1 4.6 10.6 36 35.3 3.2 5.3 0 20.1 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Wind Speed and Direction 2019, km/hour Distribution of Wind Direction 2019, %

50

N 40 30 NW NE 20 30 10

W E 20

10 SW SE

0 S 1,69 5 10 15 20 25 30 35 40 45

120 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 Average monthly temperatures 2019

20 Maximum 10 Average 0 -10 Minimum -20 Teperature °С Teperature -30 -40 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Minimum -34.20 -35.10 -25.40 -13.40 -15.00 -5.90 -1.80 -11.10 -8.90 -18.80 -25.50 -28.50 Maximum -5.60 -2.40 5.10 11.20 11.20 13.70 17.40 18.80 15.70 5.30 5.20 -3.30 Average -20.20 -18.10 -10.10 -1.90 -1.00 3.30 6.90 5.50 2.40 -5.90 -11.30 -15.40

Radionuclides and heavy metals in dust samples - Mine Site Station Zn, ng/m3 CN, ng/m3 S, ng/m3 As, ng/ Ni, ng/ Se, ng/ U, ng/m3 Sr-90, Pb-210, Ra-226, m3 m3 m3 mBq/m3 mBq/m3 mBq/m3 TLV1 1,600,000 5,000,000 330,000 10,000 200,000 200,000 200,000 DAC2 300,000 8,000 4,000 A1.1 11,700 0.700 50 7.50 13.0 0.240 2.60 <0.2 0.500 0.060 A1.2a 2,110 0.600 820 5.90 11.0 0.180 2.10 <0.2 0.600 0.020 A1.3a 3,710 0.400 280 7.20 10.0 0.290 2.00 <0.1 0.290 <0.01 A1.4 2,200 0.300 180 7.00 12.0 0.250 2.00 <0.1 0.420 0.050 A1.5a 8,910 1.750 1,030 8.70 12.5 0.260 2.15 <0.45 0.720 0.110 A1.6 990 0.700 640 5.60 10.0 0.150 1.90 <0.2 0.600 0.160 2,360 0.300 560 5.40 9.7 0.140 2.00 <0.1 0.520 0.020 Notes: 1. TLV’s have been sourced from either the Agency for Toxic Substances and Disease Registry (ATSDR), or the Occupational

Health & Safety Administration (OHSA). S and Zn TLV’s have been adjusted using the molar ratios of SO2 and ZnO. 2. DAC’s have been sourced from the 1999 International Atomic Energy Agency (IAEA) safety standards.

Radionuclides and heavy metals in dust samples - Barskoon Station Zn, ng/m3 CN, ng/m3 S, ng/m3 As, ng/ Ni, ng/ Se, ng/ U, ng/m3 Sr-90, Pb-210, Ra-226, m3 m3 m3 mBq/m3 mBq/m3 mBq/m3 TLV1 1,600,000 5,000,000 330,000 10,000 200,000 200,000 200,000 DAC2 300,000 8,000 4,000 Barskoon #1 3,170 2,000 580 5.40 9.3 <0.5 1.80 <0.4 0.900 0.310

Barskoon #2 530 2,000 530 4.90 11.0 <0.5 1.40 <0.4 0.900 <0.04

Barskoon #3 311 0.100 59 0.66 1.1 0.020 0.19 <0.04 0.110 0.009

Notes: 1. TLV’s have been sourced from either the Agency for Toxic Substances and Disease Registry (ATSDR), or the Occupational

Health & Safety Administration (OHSA). S and Zn TLV’s have been adjusted using the molar ratios of SO2 and ZnO. 2. DAC’s have been sourced from the 1999 International Atomic Energy Agency (IAEA) safety standards.

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 121 Kumtor weather station summary 2019 DAILY AVERAGE READINGS FOR 2019 Г. TEMPERATURE ºC 2 2019 km/h Press., Barom. Barom. KW/m mmHG precip., mm precip., 5 s. 5 s. W. Spd., hr./rdg. Total Total hr./rdg. Min., Max., Solar rad., Avg./h W. dir. deg. Rel. hum.,% Rel. Press., mbar

JAN max 9.40 356.27 -13.33 -5.58 -19.11 90.20 553.00 653.60 490.24 min 0.08 6.12 -26.55 -17.11 -34.16 24.20 0.00 643.50 482.67 avg 1.63 145.09 -20.23 -10.67 -28.11 61.90 95.20 649.50 487.17 tot 4.60 FEB max 11.11 352.98 -9.65 -2.42 -16.25 90.30 718.10 652.80 489.64 min 0.03 9.56 -23.64 -14.28 -35.08 18.70 0.00 639.40 479.59 avg 2.09 169.14 -18.05 -8.68 -26.90 64.30 135.30 647.80 485.89 tot 12.50 MAR max 11.37 354.87 -0.43 5.13 -5.89 99.10 925.00 657.80 493.39 min 0.00 0.00 -15.54 -5.38 -25.44 20.10 0.00 642.30 481.77 avg 2.06 217.73 -10.12 -1.47 -18.13 62.00 184.00 651.90 488.97 tot 10.60 APR max 17.33 353.09 3.13 11.17 -1.97 99.30 981.00 660.00 495.04 min 0.00 0.00 -6.35 -1.88 -13.39 14.80 0.00 647.90 485.97 avg 3.41 217.03 -1.92 4.27 -7.40 70.30 180.40 654.70 491.07 tot 40.10 MAY max 18.38 346.88 4.40 11.20 -1.70 99.30 1,005.00 661.80 496.39 min 0.00 0.00 -9.22 -4.95 -14.96 14.10 0.00 652.40 489.34 avg 3.23 183.80 -0.98 4.75 -6.17 61.10 215.30 656.70 492.57 tot 36.00 JUN max 14.43 350.70 5.86 13.72 1.49 99.40 1,131.00 661.00 495.79 min 0.00 3.57 -0.77 2.63 -5.89 21.50 0.00 653.80 490.39 avg 3.25 202.70 3.32 9.40 -1.84 67.50 193.50 656.80 492.64 tot 35.30 JUL max 14.86 352.47 10.18 17.38 5.22 99.30 1,013.00 662.70 497.07 min 0.08 8.34 3.33 7.11 -1.80 11.90 0.00 653.60 490.24 avg 2.91 184.83 6.88 13.89 0.62 64.60 197.80 658.40 493.84 tot 67.00 AUG max 14.28 352.33 10.93 18.82 6.58 99.30 922.00 662.40 496.84 min 0.00 0.00 -2.22 4.57 -11.12 11.70 0.00 654.10 490.62 avg 2.67 173.30 5.48 12.40 -0.28 69.40 172.70 659.20 494.44 tot 76.50 SEP max 15.05 355.08 6.18 15.66 0.47 99.30 843.00 665.60 499.24 min 0.01 9.52 -2.82 1.86 -8.93 10.60 0.00 651.50 488.67 avg 3.33 197.41 2.28 9.89 -3.55 59.60 156.90 659.40 494.59 tot 20.10 OCT max 12.44 356.25 0.75 5.34 -3.74 98.70 791.50 663.40 497.59 min 0.03 6.89 -12.07 -5.11 -18.77 20.30 0.00 653.40 490.09 avg 2.86 195.31 -5.76 0.92 -11.68 63.40 121.80 658.20 493.69 tot 22.10 NOV max 11.66 354.31 -3.15 5.20 -6.02 93.10 626.10 662.40 496.84 min 0.02 4.88 -19.68 -10.97 -25.54 11.60 0.00 647.50 485.67 avg 2.86 181.00 -11.27 -4.27 -17.06 56.90 95.10 654.60 490.99 tot 3.20 DEC max 13.11 352.18 -11.69 -3.30 -15.88 88.80 516.80 661.30 496.02 min 0.07 5.41 -22.17 -13.87 -28.54 13.10 0.00 641.10 480.87 avg 2.29 162.86 -15.41 -8.14 -21.80 58.50 75.60 651.80 488.89 tot 5.30 Yearly Max 18.38 356.27 10.93 18.82 6.58 99.40 1,131.00 665.60 499.24 Min 0.00 0.00 -26.55 -17.11 -35.08 10.60 0.00 639.40 479.59 Avg 5.45 181.16 -5.56 1.59 -11.74 58.56 329.14 654.56 490.96 tot 333.30

122 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 W1.1 Petrov Lake (2019) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Field Data Temperature °C 0.8 0.6 0.9 1.3 1.4 2.5 5.2 5.9 4.5 2.8 1.4 1.1 Conductivity mS/cm 0.146 0.137 0.133 0.114 0.100 0.091 0.215 0.108 0.165 0.116 0.128 0.099 pH 8.0 7.9 8.0 7.9 7.9 8.0 8.3 8.1 8.3 8.1 8.2 8.1 Major Constituents Calcium mg/L 16.9 18.9 19.3 16.3 12.0 12.50 13.5 16.5 13.1 13.1 17.6 17.7 Chloride mg/L 0.60 0.70 0.70 1.00 0.70 0.60 0.25 0.60 0.50 0.70 0.60 0.70 Carbonate mg/L 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 Bicarbonate mg/L 43.0 44.0 44.0 41.0 30.0 32.0 41.0 38.0 36.0 36.0 40.0 42.0 Potassium mg/L 1.98 1.72 1.78 1.71 1.10 1.21 1.51 3.12 1.98 1.82 1.58 3.57 Magnesium mg/L 3.42 3.25 3.73 3.24 2.20 2.18 3.30 4.14 2.92 2.69 3.59 1.82 Sodium mg/L 2.12 2.07 2.27 1.75 1.36 1.47 1.64 2.59 1.95 1.97 1.94 1.92 Sulphate mg/L 17.0 20.0 20.0 17.0 13.0 13.00 20.0 19.0 17.0 20.0 21.0 21.0 Hardness - Total mg/L 54.0 55.0 56.0 44.0 36.0 38.0 51.0 48.0 44.0 47.0 51.0 61.0 Alkalinity - Total mg/L 35.2 36.4 36.2 34.0 25.0 26.4 33.2 31.1 29.5 29.3 33.1 34.0 Total metals Silver - Total mg/L 0.00150 0.00150 0.00150 0.00150 0.00150 0.00150 0.00150 0.00150 0.00150 0.00150 0.00150 0.00150 Aluminum - Total mg/L 0.53 0.20 0.50 0.40 0.25 0.55 0.54 8.47 0.86 0.36 0.98 0.22 Arsenic - Total mg/L 0.00050 0.00050 0.00050 0.00050 0.00050 0.00050 0.00050 0.00200 0.00100 0.00100 0.00050 0.00050 Cadmium - Total mg/L 0.00015 0.00015 0.00015 0.00015 0.00015 0.00015 0.00015 0.00015 0.00015 0.00015 0.00015 0.00015 Chromium - Total mg/L 0.00400 0.00400 0.00400 0.00400 0.00400 0.00400 0.00400 0.00400 0.00400 0.00400 0.00400 0.00400 Copper - Total mg/L 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 Iron - Total mg/L 0.21 0.10 0.21 0.32 0.12 0.35 0.37 5.31 0.51 0.21 0.45 0.14 Mercury - Total mg/L 0.00025 0.00025 0.00025 0.00025 0.00025 0.00025 0.00025 0.00025 0.00025 0.00025 0.00025 0.00025 Manganese - Total mg/L 0.01300 0.01000 0.01100 0.01200 0.00700 0.01300 0.02900 0.15000 0.03000 0.01300 0.01900 0.01400 Molybdenum -Total mg/L 0.00500 0.00200 0.00200 0.00200 0.00200 0.00200 0.00200 0.00200 0.00200 0.00200 0.00200 0.00200 Nickel - Total mg/L 0.01300 0.00250 0.00250 0.00500 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 Lead - Total mg/L 0.00100 0.00100 0.00100 0.00100 0.00100 0.00100 0.00100 0.00500 0.00300 0.00100 0.00200 0.00100 Antimony - Total mg/L 0.00050 0.00050 0.00050 0.00050 0.00050 0.00050 0.00050 0.00050 0.00100 0.00050 0.00050 0.00050 Selenium - Total mg/L 0.00050 0.00050 0.00050 0.00050 0.00050 0.00050 0.00050 0.00050 0.00050 0.00050 0.00200 0.00050 Zinc - Total mg/L 0.00200 0.00100 0.00050 0.00200 0.00200 0.00100 0.00300 0.02100 0.00300 0.00300 0.00300 0.00200 Nutrients Ammonia - N mg/L Nitrite - N mg/L Nitrate - N mg/L Solids Turbidity NTU 17.0 13.0 11.0 7.10 4.70 11.0 136 222 222 40.0 21.0 21.0 TDS Total Dissolved Solids mg/L 101 70.0 68.0 88.0 54.0 55.0 95 119 128 90.0 77.0 84.0 TSS Total Suspended Solids mg/L 7.00 2.00 0.50 4.00 2.00 5.00 72.0 85.0 80.0 5.00 20.0 28.0 Trace Constituents Cyanide - Free mg/L Cyanide - Total mg/L Cyanide - WAD mg/L

W1.3 Kumtor River above ETP Discharge (2019) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Field Data Temperature °C 1.2 2.0 4.1 5.4 8.9 Conductivity mS/cm 1.302 1.211 0.393 0.445 0.408 pH 8.5 8.1 8.1 8.2 8.2 Major Constituents Calcium mg/L 88.0 108 40.2 17.4 36.3 Chloride mg/L 12.3 9.85 2.20 0.60 1.90 Carbonate mg/L 1.00 0.50 0.50 0.50 0.50 Bicarbonate mg/L 142 130 63.0 46.0 57.0 Potassium mg/L 4.88 3.47 1.98 1.62 1.57 Magnesium mg/L 75.1 118 24.0 6.77 20.30 Sodium mg/L 8.33 5.64 2.56 1.98 2.02 Sulphate mg/L 474 544 106 41.0 104 Hardness - Total mg/L 664 714 188 77.0 173 Alkalinity - Total mg/L 118 107 51.8 37.5 46.8 Total metals Silver - Total mg/L 0.00150 0.00150 0.00150 0.00150 0.00150 Aluminum - Total mg/L 1.31 8.14 6.28 0.50 0.82 Arsenic - Total mg/L 0.00250 0.02300 0.00633 0.00050 0.00050 Cadmium - Total mg/L 0.00015 0.00021 0.00015 0.00015 0.00015 Chromium - Total mg/L 0.00400 0.00725 0.00400 0.00400 0.00400 Copper - Total mg/L 0.00250 0.01138 0.00250 0.00250 0.00250 Iron - Total mg/L 2.50 4.66 3.11 0.29 0.57 Mercury - Total mg/L 0.00025 0.00025 0.00025 0.00025 0.00025 Manganese - Total mg/L 0.17275 1.10400 0.37700 0.05100 0.34200 Molybdenum -Total mg/L 0.00625 0.00950 0.00433 0.00200 0.00200 Nickel - Total mg/L 0.00250 0.03388 0.00250 0.00250 0.00250 Lead - Total mg/L 0.00400 0.01175 0.00433 0.00100 0.00100 Antimony - Total mg/L 0.00088 0.00100 0.00050 0.00050 0.00050 Selenium - Total mg/L 0.00188 0.00213 0.00100 0.00050 0.00050 Zinc - Total mg/L 0.00800 0.04775 0.01900 0.00900 0.00300 Nutrients Ammonia - N mg/L 0.09 0.32 0.12 0.12 0.12 Nitrite - N mg/L 0.00250 0.00213 0.00333 0.00050 0.00300 Nitrate - N mg/L 2.18 1.95 0.57 0.40 0.60 Solids Turbidity NTU 45.1 192 193 180 200 TDS Total Dissolved Solids mg/L 675 981 258 125 265 TSS Total Suspended Solids mg/L 91.3 750 430 129 126 Trace Constituents Cyanide - Free mg/L Cyanide - Total mg/L Cyanide - WAD mg/L

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 123 W3.4 Lysyi Creek above Kumtor River (2019) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Field Data Temperature °C 0.4 0.9 5.5 7.7 6.2 2.4 1.4 0.8 Conductivity mS/cm 1.737 1.448 1.373 1.232 1.356 1.498 1.765 2.100 pH 8.2 8.1 8.1 8.3 7.9 8.0 8.1 7.9 Major Constituents Calcium mg/L 157 131 137 113 156 121 167 237 Chloride mg/L 13.8 10.4 9.50 6.85 7.38 6.30 11.8 18.0 Carbonate mg/L 1.00 0.50 1.20 1.88 0.50 0.50 0.50 0.50 Bicarbonate mg/L 225 137 137 132 123 113 201 266 Potassium mg/L 5.88 3.88 4.11 3.77 4.04 3.61 5.17 7.13 Magnesium mg/L 210 150 130 97.7 112 97.9 141 240 Sodium mg/L 9.72 6.22 6.38 5.23 5.52 4.89 8.09 15.4 Sulphate mg/L 869 700 694 570.3 740 552 884 1168 Hardness - Total mg/L 1176 894 852 704.5 858 678 1076 1376 Alkalinity - Total mg/L 186 113 113.4 110.8 101.0 93.0 164 218 Total metals Silver - Total mg/L 0.00150 0.00150 0.00150 0.00150 0.00150 0.00150 0.00150 0.00150 Aluminum - Total mg/L 0.74 12.3 10.6 1.25 3.95 0.25 1.61 0.27 Arsenic - Total mg/L 0.00167 0.05350 0.01800 0.00225 0.00800 0.00050 0.00250 0.00050 Cadmium - Total mg/L 0.00015 0.00043 0.00015 0.00015 0.00018 0.00015 0.00015 0.00015 Chromium - Total mg/L 0.00400 0.02925 0.00400 0.00400 0.00640 0.00400 0.00400 0.00400 Copper - Total mg/L 0.00250 0.07525 0.00250 0.00250 0.01420 0.00250 0.00250 0.00250 Iron - Total mg/L 1.20 8.32 16.5 2.35 8.00 1.25 5.14 0.62 Mercury - Total mg/L 0.00025 0.00025 0.00025 0.00025 0.00025 0.00025 0.00025 0.00025 Manganese - Total mg/L 0.19967 2.65450 1.32600 0.56700 2.38200 1.84075 1.43550 0.58300 Molybdenum -Total mg/L 0.01250 0.01350 0.01040 0.00650 0.00460 0.00500 0.00375 0.01000 Nickel - Total mg/L 0.00250 0.10013 0.03660 0.00250 0.03540 0.00250 0.00250 0.00250 Lead - Total mg/L 0.00100 0.02433 0.00640 0.00225 0.00360 0.00150 0.00100 0.00100 Antimony - Total mg/L 0.00050 0.00163 0.00090 0.00050 0.00080 0.00050 0.00050 0.00050 Selenium - Total mg/L 0.00300 0.00400 0.00360 0.00188 0.00440 0.00275 0.00600 0.00450 Zinc - Total mg/L 0.00533 0.10650 0.03240 0.00625 0.02540 0.00900 0.01275 0.00550 Nutrients Ammonia - N mg/L 0.18 0.47 0.55 0.32 0.31 0.24 0.13 0.11 Nitrite - N mg/L 0.00200 0.00363 0.00140 0.00313 0.00160 0.00625 0.00700 0.00250 Nitrate - N mg/L 2.98 2.35 2.98 2.48 2.34 1.75 2.20 3.00 Solids Turbidity NTU 31.7 348 369 179 242 126 78.3 13.5 TDS Total Dissolved Solids mg/L 1708 1291 1211 1011 1223 981 1520 2000 TSS Total Suspended Solids mg/L 65.3 319 852 318 302 170 137 10.0 Trace Constituents Cyanide - Free mg/L Cyanide - Total mg/L Cyanide - WAD mg/L

T8.1 Tailings Pond - Feed to ETP (2019) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Field Data Temperature °C 2.5 1.7 1.5 2.6 4.5 9.0 12.4 12.3 8.5 3.8 2.3 1.6 Conductivity mS/cm 3.831 4.222 3.916 3.215 3.338 2.481 2.489 2.584 2.649 2.669 2.633 2.350 pH 10.1 10.3 10.0 10.5 10.2 8.9 8.8 8.9 9.0 9.0 9.1 9.2 Major Constituents Calcium mg/L 62.2 63.3 64.6 49.9 35.6 40.0 37.0 38.7 41.5 39.4 44.1 38.5 Chloride mg/L 26.3 27.5 32.2 23.0 21.5 24.6 25.5 26.0 25.5 25.0 27.0 27.0 Carbonate mg/L 16.4 27.5 70.4 11.9 20.0 12.2 12.0 9.40 9.25 8.00 15.0 23.0 Bicarbonate mg/L 242 218 166 179 120 163 179 186 188 191 184 188 Potassium mg/L 99.0 105 126 71.2 69.2 77.1 83.2 80.8 83.4 84.5 95.2 94.6 Magnesium mg/L 6.12 6.06 8.13 10.06 4.36 5.08 5.46 5.84 6.22 5.85 7.24 6.26 Sodium mg/L 522 546 658 374 378 439 456 446 456 446 528 541 Sulphate mg/L 843 923 1041 603 570 703 744 777 768 754 797 824 Hardness - Total mg/L 187 165 145 149 112 133 135 137 160 136 129 129 Alkalinity - Total mg/L 225 225 355 166 131 155 167 168 170 170 177 193 Total metals Silver - Total mg/L 0.04125 0.05175 0.04880 0.02938 0.05875 0.07180 0.06525 0.08660 0.09450 0.10700 0.10200 0.01600 Aluminum - Total mg/L 0.29 0.35 0.34 0.22 0.32 0.38 0.27 0.39 0.22 0.59 0.72 0.19 Arsenic - Total mg/L 0.00875 0.01175 0.00740 0.00575 0.00575 0.00640 0.00650 0.00580 0.00775 0.01200 0.01100 0.01100 Cadmium - Total mg/L 0.00168 0.00175 0.00156 0.00111 0.00133 0.00124 0.00135 0.00112 0.00140 0.00100 0.00150 0.00130 Chromium - Total mg/L 0.00400 0.00400 0.00400 0.00400 0.00400 0.00400 0.00400 0.00400 0.00400 0.00400 0.00400 0.00400 Copper - Total mg/L 24.0800 26.6000 27.6660 17.5450 19.5700 24.2800 24.3995 21.6220 21.6000 22.9000 24.8000 24.7000 Iron - Total mg/L 0.78 1.37 1.50 1.20 1.69 2.33 1.98 2.25 1.49 1.94 2.40 0.58 Mercury - Total mg/L 0.00508 0.00613 0.00762 0.00470 0.00413 0.00450 0.00603 0.00558 0.00565 0.00700 0.00790 0.00640 Manganese - Total mg/L 0.03050 0.02425 0.02420 0.05025 0.01550 0.02040 0.02300 0.03140 0.03200 0.03500 0.04400 0.02400 Molybdenum -Total mg/L 0.44875 0.46150 0.51920 0.30775 0.34500 0.40840 0.41975 0.38700 0.38025 0.37100 0.37700 0.39400 Nickel - Total mg/L 0.83325 0.91475 1.00240 0.59050 0.68150 0.84300 0.87200 0.80940 0.81300 0.81300 0.78300 0.57700 Lead - Total mg/L 0.00100 0.00100 0.00100 0.00100 0.00100 0.00140 0.00150 0.00100 0.00275 0.00100 0.00400 0.00100 Antimony - Total mg/L 0.51975 0.50050 0.48220 0.30000 0.28250 0.36200 0.39900 0.36960 0.40975 0.45400 0.52200 0.62600 Selenium - Total mg/L 0.03750 0.03875 0.04080 0.02300 0.02200 0.02220 0.02425 0.02240 0.02150 0.02900 0.02500 0.02900 Zinc - Total mg/L 0.02475 0.03125 0.03500 0.03675 0.09750 0.09680 0.07700 0.03320 0.02500 0.02600 0.05600 0.10600 Nutrients Ammonia - N mg/L 16.5 16.4 17.2 13.8 13.3 12.7 13.2 12.2 12.3 13.8 8.10 13.9 Nitrite - N mg/L 0.00500 0.00413 0.00880 0.01400 0.01725 0.00850 0.02425 0.05180 0.06325 0.11000 0.03800 0.01900 Nitrate - N mg/L 21.3 23.8 27.8 17.3 17.7 16.8 18.0 18.6 18.3 18.0 21.0 20.0 Solids Turbidity NTU 10.1 9.63 49.1 7.90 12.9 22.2 31.0 37.4 39.3 35.0 39.0 28.0 TDS Total Dissolved Solids mg/L 2164 2220 2635 1633 1474 1742 1824 1807 1833 1787 1868 2017 TSS Total Suspended Solids mg/L 5.25 8.25 62.0 7.00 4.38 10.4 17.5 15.0 20.0 27.0 21.0 11.0 Trace Constituents Cyanide - Free mg/L 3.10 3.10 13.96 4.47 7.05 3.72 2.60 2.54 2.35 2.10 2.10 3.00 Cyanide - Total mg/L 46.8 49.0 59.0 43.7 36.4 35.8 28.5 26.8 27.0 32.0 37.0 46.0 Cyanide - WAD mg/L 41.5 45.0 53.0 49.0 33.6 33.0 27.0 25.4 25.8 30.0 36.0 45.0

124 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 T8.4 ETP Discharge into Kumtor River (2019) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Field Data Temperature °C 7.0 8.6 12.1 12.1 9.4 Conductivity mS/cm 1.94 2.64 2.67 2.62 2.78 pH 7.6 7.7 7.5 7.5 7.5 Major Constituents Calcium mg/L 39.2 55.3 54.8 51.8 61.6 Chloride mg/L 47.0 25.8 24.5 25.2 24.7 Carbonate mg/L 17.0 4.20 0.50 0.50 0.50 Bicarbonate mg/L 111 132 73.8 90.6 108 Potassium mg/L 44.7 69.8 80.2 76.5 78.9 Magnesium mg/L 8.59 5.59 5.68 5.93 6.33 Sodium mg/L 340 477 487 471 487 Sulphate mg/L 550 898 958 977 998 Hardness - Total mg/L 129 167 178 160 188 Alkalinity - Total mg/L 120 115 60.6 74.2 89 Total metals Silver - Total mg/L 0.00150 0.00150 0.00150 0.00150 0.00150 Aluminum - Total mg/L 0.48 0.10 0.08 0.10 0.06 Arsenic - Total mg/L 0.00200 0.00220 0.00175 0.00170 0.00167 Cadmium - Total mg/L 0.00050 0.00100 0.00120 0.00098 0.00120 Chromium - Total mg/L 0.00400 0.00400 0.00400 0.00400 0.00400 Copper - Total mg/L 0.23500 0.43360 0.23975 0.18320 0.33667 Iron - Total mg/L 0.68 0.28 0.19 0.18 0.13 Mercury - Total mg/L 0.00190 0.00388 0.00665 0.00628 0.00580 Manganese - Total mg/L 0.05600 0.03160 0.01975 0.01940 0.02933 Molybdenum -Total mg/L 0.18700 0.34800 0.37625 0.34700 0.34700 Nickel - Total mg/L 0.01700 0.02775 0.03700 0.03240 0.04767 Lead - Total mg/L 0.00100 0.00100 0.00100 0.00120 0.00100 Antimony - Total mg/L 0.11300 0.26280 0.30175 0.28300 0.29233 Selenium - Total mg/L 0.01100 0.02200 0.02425 0.02260 0.02267 Zinc - Total mg/L 0.00800 0.00400 0.00350 0.00300 0.00467 Nutrients Ammonia - N mg/L 14.5 23.2 22.6 23.0 16.3 Nitrite - N mg/L 0.00700 0.01270 0.20000 0.31600 0.47333 Nitrate - N mg/L 8.10 15.2 16.5 16.2 16.7 Solids Turbidity NTU 14.0 2.19 2.22 1.73 1.40 TDS Total Dissolved Solids mg/L 1196 1851 1947 1934 1995 TSS Total Suspended Solids mg/L 13.0 4.40 4.50 4.00 4.33 Trace Constituents Cyanide - Free mg/L 0.01000 0.02920 0.02100 0.02100 0.02100 Cyanide - Total mg/L 0.23000 0.30400 0.40500 0.44800 0.46667 Cyanide - WAD mg/L 0.02300 0.03700 0.03000 0.03460 0.04067

W1.4 Kumtor River Flume (2019) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Field Data Temperature °C 1.7 4.4 6.7 10.3 10.2 3.5 Conductivity mS/cm 1.052 1.247 0.743 0.861 0.609 0.414 pH 8.4 8.1 8.2 8.3 8.1 7.9 Major Constituents Calcium mg/L 99.2 108 50.6 17.1 33.3 30.0 Chloride mg/L 11.3 10.3 6.83 1.40 5.00 3.00 Carbonate mg/L 1.88 0.50 0.50 0.50 0.50 0.50 Bicarbonate mg/L 151 142 79.3 47.0 57.0 51.0 Potassium mg/L 4.27 5.40 10.9 3.47 10.3 7.71 Magnesium mg/L 97.6 118 27.1 5.4 14.0 10.8 Sodium mg/L 8.7 21.2 67.0 15.2 57.0 42.1 Sulphate mg/L 436 484 240 59 184 105 Hardness - Total mg/L 618 717 213 73.0 146 102 Alkalinity - Total mg/L 127 117 65.3 38.5 46.8 41.6 Total metals Silver - Total mg/L 0.00150 0.00150 0.00150 0.00150 0.00150 0.00150 Aluminum - Total mg/L 2.33 2.76 5.33 1.03 0.62 0.73 Arsenic - Total mg/L 0.00275 0.00425 0.00900 0.00050 0.00050 0.00100 Cadmium - Total mg/L 0.00015 0.00015 0.00015 0.00015 0.00015 0.00015 Chromium - Total mg/L 0.00400 0.00400 0.00400 0.00400 0.00400 0.00400 Copper - Total mg/L 0.00638 0.00250 0.00250 0.00250 0.00250 0.00250 Iron - Total mg/L 3.54 4.81 10.7 1.08 0.37 0.44 Mercury - Total mg/L 0.00025 0.00025 0.00025 0.00025 0.00025 0.00025 Manganese - Total mg/L 0.21250 0.28775 0.42533 0.08500 0.16300 0.11000 Molybdenum -Total mg/L 0.00450 0.01375 0.04167 0.01100 0.04100 0.02500 Nickel - Total mg/L 0.00250 0.00663 0.00250 0.00250 0.00250 0.00250 Lead - Total mg/L 0.00100 0.00125 0.00500 0.00100 0.00100 0.00400 Antimony - Total mg/L 0.00063 0.00488 0.02600 0.00700 0.03200 0.01800 Selenium - Total mg/L 0.00175 0.00225 0.00217 0.00050 0.00300 0.00050 Zinc - Total mg/L 0.01125 0.00925 0.01900 0.00900 0.00200 0.00500 Nutrients Ammonia - N mg/L 0.10 0.79 2.78 0.54 2.40 1.61 Nitrite - N mg/L 0.00350 0.00250 0.00300 0.01500 0.04500 0.03400 Nitrate - N mg/L 1.75 1.78 2.43 0.70 2.30 1.40 Solids Turbidity NTU 92.3 76.0 149 221 167 173 TDS Total Dissolved Solids mg/L 931 1061 505 169 421 287 TSS Total Suspended Solids mg/L 209 152 442 220 112 105 Trace Constituents Cyanide - Free mg/L 0.00250 0.00313 0.00367 0.00250 0.00250 0.00250 Cyanide - Total mg/L 0.00313 0.02250 0.08567 0.01700 0.13000 0.04700 Cyanide - WAD mg/L 0.00250 0.00775 0.01733 0.00500 0.01900 0.01200

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 125 W4.1 UDD at Headwater of Arabel Suu Diversion Ditch (2019) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Field Data Temperature °C 3.6 6.0 9.4 8.7 Conductivity mS/cm 0.137 0.169 0.145 0.141 pH 8.2 8.1 8.2 8.2 Major Constituents Calcium mg/L 22.7 20.3 16.8 12.5 Chloride mg/L 3.00 5.50 3.40 1.40 Carbonate mg/L 0.50 0.50 0.50 0.50 Bicarbonate mg/L 61.0 56.0 54.0 42.0 Potassium mg/L 1.62 0.82 0.59 0.52 Magnesium mg/L 2.74 2.27 2.00 1.51 Sodium mg/L 1.85 1.81 1.50 0.97 Sulphate mg/L 8.00 6.00 6.00 5.00 Hardness - Total mg/L 59.0 58.0 51.0 39.0 Alkalinity - Total mg/L 50.0 45.9 44.4 34.6 Total metals Silver - Total mg/L 0.00150 0.00150 0.00150 0.00150 Aluminum - Total mg/L 0.13 0.06 0.15 0.16 Arsenic - Total mg/L 0.00050 0.00050 0.00050 0.00050 Cadmium - Total mg/L 0.00015 0.00015 0.00015 0.00015 Chromium - Total mg/L 0.00400 0.00400 0.00400 0.00400 Copper - Total mg/L 0.00250 0.00250 0.00250 0.00250 Iron - Total mg/L 0.28 0.26 0.22 0.21 Mercury - Total mg/L 0.00025 0.00025 0.00025 0.00025 Manganese - Total mg/L 0.07600 0.04900 0.02700 0.02100 Molybdenum -Total mg/L 0.00200 0.00200 0.00200 0.00200 Nickel - Total mg/L 0.00250 0.00250 0.00250 0.00250 Lead - Total mg/L 0.00100 0.00100 0.00100 0.00200 Antimony - Total mg/L 0.00050 0.00050 0.00050 0.00050 Selenium - Total mg/L 0.00050 0.00050 0.00050 0.00050 Zinc - Total mg/L 0.00200 0.00050 0.00050 0.00100 Nutrients Ammonia - N mg/L 0.10 0.02 0.02 0.06 Nitrite - N mg/L 0.00400 0.00400 0.00200 0.00300 Nitrate - N mg/L 0.10 0.05 0.20 0.20 Solids Turbidity NTU 2.90 2.70 5.30 6.30 TDS Total Dissolved Solids mg/L 78.0 78.0 68.0 47.0 TSS Total Suspended Solids mg/L 2.00 2.00 5.00 3.00 Trace Constituents Cyanide - Free mg/L Cyanide - Total mg/L Cyanide - WAD mg/L

W4.2 LDD Lower Diversion Ditch (2019) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Field Data Temperature °C 10.5 Conductivity mS/cm 0.337 pH 8.5 Major Constituents Calcium mg/L 49.1 Chloride mg/L 19.0 Carbonate mg/L 2.00 Bicarbonate mg/L 122 Potassium mg/L 1.55 Magnesium mg/L 11.2 Sodium mg/L 8.11 Sulphate mg/L 32.0 Hardness - Total mg/L 156 Alkalinity - Total mg/L 103 Total metals Silver - Total mg/L 0.00150 Aluminum - Total mg/L 0.19 Arsenic - Total mg/L 0.00050 Cadmium - Total mg/L 0.00015 Chromium - Total mg/L 0.00400 Copper - Total mg/L 0.00250 Iron - Total mg/L 0.20 Mercury - Total mg/L 0.00025 Manganese - Total mg/L 0.02000 Molybdenum -Total mg/L 0.00200 Nickel - Total mg/L 0.00250 Lead - Total mg/L 0.00100 Antimony - Total mg/L 0.00050 Selenium - Total mg/L 0.00050 Zinc - Total mg/L 0.00200 Nutrients Ammonia - N mg/L 0.02 Nitrite - N mg/L 0.00300 Nitrate - N mg/L 0.10 Solids Turbidity NTU 4.20 TDS Total Dissolved Solids mg/L 222 TSS Total Suspended Solids mg/L 4.00 Trace Constituents Cyanide - Free mg/L Cyanide - Total mg/L Cyanide - WAD mg/L

126 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 W4.2.1 NLDD New Lower Diversion Ditch (2019) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Field Data Temperature °C 6.8 7.4 11.2 Conductivity mS/cm 0.240 0.213 0.189 pH 8.2 8.2 8.3 Major Constituents Calcium mg/L 35.9 28.3 26.1 Chloride mg/L 8.80 6.20 4.30 Carbonate mg/L 0.50 0.50 0.50 Bicarbonate mg/L 103 97.0 88.0 Potassium mg/L 1.78 1.57 1.44 Magnesium mg/L 7.49 5.82 4.87 Sodium mg/L 3.63 2.84 2.35 Sulphate mg/L 21.0 16.0 14.0 Hardness - Total mg/L 113 83.0 88.0 Alkalinity - Total mg/L 84.8 79.3 71.9 Total metals Silver - Total mg/L 0.00150 0.00150 0.00150 Aluminum - Total mg/L 0.69 0.39 0.11 Arsenic - Total mg/L 0.00100 0.00050 0.00050 Cadmium - Total mg/L 0.00015 0.00015 0.00015 Chromium - Total mg/L 0.00400 0.00400 0.00400 Copper - Total mg/L 0.00250 0.00250 0.00250 Iron - Total mg/L 0.78 0.47 0.09 Mercury - Total mg/L 0.00025 0.00025 0.00025 Manganese - Total mg/L 0.02800 0.02300 0.00900 Molybdenum -Total mg/L 0.00200 0.00200 0.00200 Nickel - Total mg/L 0.00250 0.00250 0.00250 Lead - Total mg/L 0.00100 0.00200 0.00100 Antimony - Total mg/L 0.00050 0.00050 0.00050 Selenium - Total mg/L 0.00050 0.00050 0.00050 Zinc - Total mg/L 0.00300 0.00100 0.00300 Nutrients Ammonia - N mg/L 0.02 0.02 0.02 Nitrite - N mg/L 0.00400 0.00200 0.00200 Nitrate - N mg/L 0.10 0.20 0.20 Solids Turbidity NTU 7.10 5.40 8.10 TDS Total Dissolved Solids mg/L 141 121 107 TSS Total Suspended Solids mg/L 27.0 13.0 16.0 Trace Constituents Cyanide - Free mg/L Cyanide - Total mg/L Cyanide - WAD mg/L

W4.3.1 Discharge from LDD Seddiment Pond to Kumtor River (2019) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Field Data Temperature °C 3.8 6.3 10.3 7.3 Conductivity mS/cm 0.173 0.154 0.133 0.102 pH 8.4 7.8 8.2 8.0 Major Constituents Calcium mg/L 29.1 24.3 19.6 15.8 Chloride mg/L 7.70 6.50 3.20 1.70 Carbonate mg/L 0.50 0.50 0.50 0.50 Bicarbonate mg/L 77.0 68.0 63.0 51.0 Potassium mg/L 1.61 0.99 0.75 0.60 Magnesium mg/L 4.01 3.30 2.62 2.10 Sodium mg/L 2.42 2.19 1.64 1.21 Sulphate mg/L 10.0 9.00 8.00 6.00 Hardness - Total mg/L 82.0 69.0 50.0 47.0 Alkalinity - Total mg/L 63.4 56.0 51.9 41.5 Total metals Silver - Total mg/L 0.00150 0.00150 0.00150 0.00150 Aluminum - Total mg/L 3.36 0.17 0.10 0.07 Arsenic - Total mg/L 0.00300 0.00050 0.00050 0.00050 Cadmium - Total mg/L 0.00015 0.00015 0.00015 0.00015 Chromium - Total mg/L 0.00400 0.00400 0.00400 0.00400 Copper - Total mg/L 0.00900 0.00250 0.00250 0.00250 Iron - Total mg/L 4.17 0.31 0.14 0.11 Mercury - Total mg/L 0.00025 0.00025 0.00025 0.00025 Manganese - Total mg/L 0.14700 0.02300 0.01200 0.01000 Molybdenum -Total mg/L 0.00200 0.00200 0.00200 0.00200 Nickel - Total mg/L 0.00250 0.00250 0.00250 0.00250 Lead - Total mg/L 0.00100 0.00100 0.00100 0.00100 Antimony - Total mg/L 0.00050 0.00050 0.00050 0.00050 Selenium - Total mg/L 0.00100 0.00050 0.00050 0.00050 Zinc - Total mg/L 0.01100 0.00200 0.00050 0.00200 Nutrients Ammonia - N mg/L 0.13 0.02 0.02 0.02 Nitrite - N mg/L 0.00600 0.00300 0.00100 0.00200 Nitrate - N mg/L 0.10 0.05 0.10 0.20 Solids Turbidity NTU 69.0 5.10 3.20 4.60 TDS Total Dissolved Solids mg/L 115 81.0 68.0 56.0 TSS Total Suspended Solids mg/L 200 14.0 5.00 4.00 Trace Constituents Cyanide - Free mg/L Cyanide - Total mg/L Cyanide - WAD mg/L

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 127 POR1 SUMP Collection Point for Central Pit Waters Prior to Discharge (2019) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Field Data Temperature °C 3.9 3.7 5.0 4.4 3.1 4.0 3.7 Conductivity mS/cm 1.755 1.505 1.160 0.540 0.707 1.109 0.987 pH 8.2 8.3 8.4 8.5 8.0 8.3 8.2 Major Constituents Calcium mg/L 209 213 202 115 63.8 139 93.6 Chloride mg/L 38.0 43.8 18.0 12.0 3.00 9.1 5.20 Carbonate mg/L 0.50 1.63 0.50 0.50 0.50 0.50 2.00 Bicarbonate mg/L 160 154 145 88.0 60.0 138 125 Potassium mg/L 7.94 6.78 7.68 5.19 2.57 5.25 3.54 Magnesium mg/L 128 156 134.3 56.3 27.1 79.1 45.9 Sodium mg/L 36.4 22.6 41.4 10.1 5.75 20.2 14.5 Sulphate mg/L 815 895 923 322 212 560 394 Hardness - Total mg/L 803 1116 1054 425 265 661 503 Alkalinity - Total mg/L 132 128 119 71.8 49.0 113 107 Total metals Silver - Total mg/L 0.00150 0.00150 0.00150 0.00150 0.00150 0.00150 0.00150 Aluminum - Total mg/L 1.70 1.45 1.49 0.46 1.93 0.15 0.07 Arsenic - Total mg/L 0.01350 0.00650 0.01100 0.00200 0.00300 0.02400 0.01500 Cadmium - Total mg/L 0.00015 0.00054 0.00023 0.00015 0.00015 0.00015 0.00015 Chromium - Total mg/L 0.00400 0.00400 0.00400 0.00400 0.00400 0.00400 0.00400 Copper - Total mg/L 0.00250 0.00250 0.00250 0.00250 0.00700 0.00250 0.00250 Iron - Total mg/L 2.29 2.18 2.31 0.88 3.26 0.22 0.11 Mercury - Total mg/L 0.00025 0.00036 0.00143 0.00025 0.00025 0.00025 0.00025 Manganese - Total mg/L 0.43600 0.44125 0.42450 0.29500 0.33000 0.09600 0.04800 Molybdenum -Total mg/L 0.05350 0.04925 0.09350 0.03200 0.02200 0.05800 0.03300 Nickel - Total mg/L 0.04550 0.04750 0.05600 0.05300 0.04100 0.03600 0.01900 Lead - Total mg/L 0.00200 0.00100 0.00100 0.00100 0.00100 0.00100 0.00100 Antimony - Total mg/L 0.01900 0.01100 0.02750 0.00800 0.00600 0.02400 0.02400 Selenium - Total mg/L 0.00450 0.00350 0.00550 0.00200 0.00050 0.00050 0.00500 Zinc - Total mg/L 0.01100 0.01550 0.00800 0.00700 0.00700 0.00400 0.02000 Nutrients Ammonia - N mg/L 0.72 0.34 1.77 0.22 0.17 0.54 0.02 Nitrite - N mg/L 0.01250 0.00375 0.00500 0.00300 0.00600 0.00790 0.01700 Nitrate - N mg/L 2.75 2.23 2.30 1.10 0.60 1.61 0.70 Solids Turbidity NTU 150 42.8 48.5 25.0 64.0 47.0 39.0 TDS Total Dissolved Solids mg/L 1582 1665 1595 624 413 982 732 TSS Total Suspended Solids mg/L 235 89.8 79.5 23.0 60.0 32.0 41.0 Trace Constituents Cyanide - Free mg/L Cyanide - Total mg/L Cyanide - WAD mg/L

SWW1 Sarytor Glacier Lake Out low at Weir (2019) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Field Data Temperature °C 5.7 1.8 Conductivity mS/cm 0.810 1.356 pH 8.4 8.3 Major Constituents Calcium mg/L 68.5 131.0 Chloride mg/L 1.80 1.70 Carbonate mg/L 0.50 0.50 Bicarbonate mg/L 82.0 113 Potassium mg/L 1.95 2.70 Magnesium mg/L 115 117 Sodium mg/L 1.53 2.21 Sulphate mg/L 655 662 Hardness - Total mg/L 726 766 Alkalinity - Total mg/L 67.1 93.1 Total metals Silver - Total mg/L 0.00150 0.00150 Aluminum - Total mg/L 0.14 0.09 Arsenic - Total mg/L 0.00050 0.00050 Cadmium - Total mg/L 0.00015 0.00015 Chromium - Total mg/L 0.00400 0.00400 Copper - Total mg/L 0.00250 0.00250 Iron - Total mg/L 0.20 0.22 Mercury - Total mg/L 0.00025 0.00025 Manganese - Total mg/L 1.42000 0.86500 Molybdenum -Total mg/L 0.00600 0.00600 Nickel - Total mg/L 0.06200 0.03800 Lead - Total mg/L 0.00100 0.00100 Antimony - Total mg/L 0.00050 0.00050 Selenium - Total mg/L 0.00050 0.00200 Zinc - Total mg/L 0.00800 0.03200 Nutrients Ammonia - N mg/L 0.16 0.08 Nitrite - N mg/L 0.00400 0.00800 Nitrate - N mg/L 0.40 0.60 Solids Turbidity NTU 40.0 15.0 TDS Total Dissolved Solids mg/L 1077 1097 TSS Total Suspended Solids mg/L 41.0 20.0 Trace Constituents Cyanide - Free mg/L Cyanide - Total mg/L Cyanide - WAD mg/L

128 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 W2.6.1 New Chon-Sarytor Creek in Central Valley before joining Kumtor River ( 2019) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Field Data Temperature °C 2.7 4.8 12.0 15.9 8.4 5.9 2.1 Conductivity mS/cm 2.910 2.046 1.519 2.317 1.005 1.576 2.169 pH 8.3 8.3 8.0 8.2 8.2 8.3 8.2 Major Constituents Calcium mg/L 402 309 224 288 158 247 324 Chloride mg/L 31.5 17.4 14.2 18.6 21.0 36.0 40.3 Carbonate mg/L 0.50 0.50 0.50 0.50 0.50 0.50 0.50 Bicarbonate mg/L 236 198 158 144 133 172 198 Potassium mg/L 23.2 15.1 9.24 15.7 4.06 6.93 9.47 Magnesium mg/L 158 146 85.1 158 43.4 85.3 127 Sodium mg/L 36.8 21.3 14.7 28.9 7.80 15.0 21.6 Sulphate mg/L 1329 949 656 1211 420 729 1068 Hardness - Total mg/L 1813 1359 899 1589 579 946 1400 Alkalinity - Total mg/L 193 163 130 118 109 142 162 Total metals Silver - Total mg/L 0.00150 0.00150 0.00150 0.00150 0.00150 0.00150 0.00150 Aluminum - Total mg/L 9.20 40.3 33.1 16.4 28.8 1.63 22.4 Arsenic - Total mg/L 0.00700 0.03420 0.05000 0.01900 0.03600 0.00300 0.01400 Cadmium - Total mg/L 0.00031 0.00052 0.00120 0.00071 0.00159 0.00019 0.00057 Chromium - Total mg/L 0.00675 0.05260 0.08600 0.02375 0.08425 0.00400 0.03000 Copper - Total mg/L 0.01863 0.07760 0.16050 0.03975 0.10975 0.00625 0.05933 Iron - Total mg/L 15.3 30.5 42.0 23.2 51.1 1.71 28.1 Mercury - Total mg/L 0.00025 0.00025 0.00025 0.00025 0.00025 0.00025 0.00025 Manganese - Total mg/L 0.97050 1.90780 4.11250 2.17625 4.13175 0.53125 2.42233 Molybdenum -Total mg/L 0.02350 0.01540 0.01125 0.01700 0.00740 0.01375 0.00467 Nickel - Total mg/L 0.03475 0.08560 0.15125 0.03925 0.11538 0.00688 0.05500 Lead - Total mg/L 0.01175 0.02500 0.07025 0.02700 0.07700 0.00525 0.04433 Antimony - Total mg/L 0.00125 0.00150 0.00200 0.00113 0.00110 0.00088 0.00050 Selenium - Total mg/L 0.00425 0.00300 0.00375 0.00525 0.00290 0.00250 0.00533 Zinc - Total mg/L 0.02525 0.11780 0.20850 0.05575 0.19450 0.00700 0.08833 Nutrients Ammonia - N mg/L 2.05 1.50 1.79 2.54 0.89 0.66 0.40 Nitrite - N mg/L 0.00800 0.02880 0.00138 0.00275 0.00110 0.01750 0.00517 Nitrate - N mg/L 52.0 53.0 23.4 11.2 5.4 15.0 29.0 Solids Turbidity NTU 438 2594 4410 3640 4600 3368 3324 TDS Total Dissolved Solids mg/L 2913 1988 1287 2308 836 1350 2042 TSS Total Suspended Solids mg/L 1217 2911 6618 7182 3825 3359 4024 Trace Constituents Cyanide - Free mg/L Cyanide - Total mg/L Cyanide - WAD mg/L

SWS.3.1 Kichi-Sarytor Creek before joining Kumtor River (2019) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Field Data Temperature °C 0.4 1.9 6.5 4.8 5.6 5.9 4.8 0.4 Conductivity mS/cm 4.100 4.124 1.488 0.928 0.893 1.221 2.100 7.260 pH 8.6 8.4 8.3 8.2 8.1 8.2 8.4 8.0 Major Constituents Calcium mg/L 266 207 112 69.1 86.8 112 173 386 Chloride mg/L 27.0 20.7 4.60 2.90 4.90 7.23 6.90 47.0 Carbonate mg/L 0.50 0.50 0.50 0.50 0.50 1.13 0.50 0.50 Bicarbonate mg/L 312 250 110 74.3 77.2 111 172 507 Potassium mg/L 16.0 8.08 3.74 2.61 3.13 4.85 4.00 18.2 Magnesium mg/L 123 268 164 83.9 77.8 113 238 153 Sodium mg/L 20.8 15.4 4.61 3.13 4.78 16.0 5.34 28.4 Sulphate mg/L 728 1529 779 436 442 612 1184 816 Hardness - Total mg/L 869 1885 907 517 524 718 1401 869 Alkalinity - Total mg/L 256 205 90.8 60.8 63.3 92.6 141 416 Total metals Silver - Total mg/L 0.00150 0.00150 0.00150 0.00150 0.00150 0.00150 0.00150 0.00150 Aluminum - Total mg/L 2.32 2.72 7.74 2.58 7.81 0.40 3.05 0.05 Arsenic - Total mg/L 0.00600 0.00660 0.00775 0.00538 0.00820 0.00338 0.00500 0.00050 Cadmium - Total mg/L 0.00015 0.00044 0.00015 0.00015 0.00015 0.00015 0.00015 0.00015 Chromium - Total mg/L 0.00400 0.00400 0.00800 0.00400 0.00920 0.00400 0.00400 0.00400 Copper - Total mg/L 0.00250 0.00530 0.01175 0.00250 0.01130 0.00250 0.00250 0.00250 Iron - Total mg/L 4.82 5.76 14.89 5.02 16.11 0.67 4.12 0.09 Mercury - Total mg/L 0.00025 0.00025 0.00025 0.00025 0.00025 0.00025 0.00025 0.00025 Manganese - Total mg/L 0.98050 1.93500 0.95525 0.97425 0.94360 0.59025 0.94300 1.04600 Molybdenum -Total mg/L 0.00200 0.00840 0.01375 0.01325 0.01320 0.02325 0.01400 0.00800 Nickel - Total mg/L 0.73600 0.56120 0.09500 0.06150 0.06380 0.04425 0.06200 0.57700 Lead - Total mg/L 0.00100 0.00560 0.00225 0.00425 0.00560 0.00275 0.00100 0.00100 Antimony - Total mg/L 0.00050 0.00150 0.00150 0.00213 0.00340 0.00900 0.00050 0.00100 Selenium - Total mg/L 0.01300 0.00960 0.00200 0.00138 0.00210 0.00138 0.00900 0.01000 Zinc - Total mg/L 0.01100 0.01160 0.02400 0.01275 0.02220 0.00450 0.01100 0.00600 Nutrients Ammonia - N mg/L 1.24 0.73 0.12 0.19 0.14 0.14 0.02 1.78 Nitrite - N mg/L 0.02300 0.00780 0.00900 0.00263 0.00090 0.00433 0.00500 0.01100 Nitrate - N mg/L 31.0 17.6 2.23 0.78 1.32 1.83 2.50 21.0 Solids Turbidity NTU 92.0 90.6 294 387 275 204 75.0 0.36 TDS Total Dissolved Solids mg/L 1270 2727 1361 755.8 740.2 1053 2102 1430 TSS Total Suspended Solids mg/L 311 133 216 565 557 364 94.0 3.00 Trace Constituents Cyanide - Free mg/L Cyanide - Total mg/L Cyanide - WAD mg/L

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 129 W1.5.1 Kumtor River Just Downstream of Kumtor Concession Area - Voluntary Compliance Point (2019) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Field Data Temperature °C 1.1 5.6 6.4 7.5 6.4 4.3 1.4 0.7 Conductivity mS/cm 1.733 0.732 0.511 0.327 0.396 0.494 0.622 0.376 pH 8.4 8.2 8.1 8.2 8.1 8.0 8.2 8.1 Major Constituents Calcium mg/L 113 65.3 38.2 28.6 35.2 36.1 48.9 45.6 Chloride mg/L 28.3 11.5 6.13 1.88 3.32 4.08 5.20 3.85 Carbonate mg/L 0.88 0.50 0.50 0.50 0.50 0.50 0.50 0.50 Bicarbonate mg/L 142 104 72.0 54.0 54.8 60.0 83.3 78.8 Potassium mg/L 5.43 4.41 6.85 4.01 4.59 6.48 2.41 2.39 Magnesium mg/L 108 57.0 17.8 14.0 14.7 17.2 45.7 24.8 Sodium mg/L 11.1 18.1 41.0 17.5 21.6 34.2 5.26 5.13 Sulphate mg/L 469 264 149 100 122 148 247 105 Hardness - Total mg/L 684 370 166 107 142 155 324 183 Alkalinity - Total mg/L 117 85.7 59.0 44.2 45.2 49.1 68.3 64.6 Total metals Silver - Total mg/L 0.00150 0.00150 0.00150 0.00150 0.00150 0.00150 0.00150 0.00150 Aluminum - Total mg/L 1.42 1.99 3.50 3.14 7.83 0.46 1.93 0.55 Arsenic - Total mg/L 0.00200 0.00210 0.00400 0.00250 0.00360 0.00088 0.00188 0.00063 Cadmium - Total mg/L 0.00015 0.00040 0.00015 0.00015 0.00015 0.00015 0.00015 0.00015 Chromium - Total mg/L 0.00400 0.00400 0.00550 0.00400 0.00540 0.00400 0.00400 0.00400 Copper - Total mg/L 0.00250 0.00300 0.01463 0.00250 0.00380 0.00388 0.00250 0.00250 Iron - Total mg/L 2.03 2.70 5.26 3.82 7.85 0.24 1.50 0.40 Mercury - Total mg/L 0.00025 0.00025 0.00025 0.00025 0.00025 0.00025 0.00025 0.00025 Manganese - Total mg/L 0.30950 0.23360 0.22075 0.21850 0.38900 0.13750 0.19625 0.04550 Molybdenum -Total mg/L 0.00575 0.01120 0.02750 0.01325 0.01760 0.02750 0.00500 0.00750 Nickel - Total mg/L 0.00250 0.01200 0.00663 0.00388 0.00560 0.00250 0.00250 0.00250 Lead - Total mg/L 0.00100 0.00100 0.00225 0.00400 0.00540 0.00200 0.00150 0.00100 Antimony - Total mg/L 0.00063 0.00550 0.01925 0.00613 0.01120 0.01738 0.00163 0.00088 Selenium - Total mg/L 0.00163 0.00170 0.00263 0.00088 0.00210 0.00150 0.00250 0.00150 Zinc - Total mg/L 0.00925 0.00660 0.01375 0.01350 0.02000 0.00225 0.00575 0.02025 Nutrients Ammonia - N mg/L 0.28 0.71 1.67 0.72 0.87 1.20 0.14 0.14 Nitrite - N mg/L 0.00450 0.00390 0.00550 0.00825 0.01580 0.02550 0.00400 0.00500 Nitrate - N mg/L 6.65 2.26 1.68 0.90 1.20 1.55 1.15 0.85 Solids Turbidity NTU 75.5 51.0 101 183 265 136 56.5 19.0 TDS Total Dissolved Solids mg/L 655 590 344 223 271 326 472 248 TSS Total Suspended Solids mg/L 173 93.6 224 350 304 116 56.0 14.8 Trace Constituents Cyanide - Free mg/L 0.00250 0.00250 0.00250 0.00250 0.00250 0.00313 0.00250 0.00250 Cyanide - Total mg/L 0.00313 0.01630 0.03950 0.02525 0.03900 0.03750 0.00250 0.00250 Cyanide - WAD mg/L 0.00250 0.00490 0.00925 0.00675 0.00710 0.00875 0.00250 0.00250

W6.1 Arabel Suu River - 6km from Kumtor Concession Area (2019) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Field Data Temperature °C 10.5 5.3 10.6 10.3 8.0 Conductivity mS/cm 0.175 0.241 0.139 0.108 0.288 pH 8.3 8.2 8.3 8.2 8.2 Major Constituents Calcium mg/L 31.8 30.6 21.5 19.0 45.9 Chloride mg/L 3.70 3.10 1.10 0.80 4.30 Carbonate mg/L 0.50 0.50 0.50 0.50 0.50 Bicarbonate mg/L 81.0 81.0 63.0 49.0 102 Potassium mg/L 0.88 0.75 0.81 2.04 0.93 Magnesium mg/L 3.67 3.63 2.94 2.56 6.34 Sodium mg/L 1.91 2.12 1.30 1.22 2.85 Sulphate mg/L 15.0 19.0 14.0 10.0 45.0 Hardness - Total mg/L 85.0 89.0 68.0 51.0 134 Alkalinity - Total mg/L 66.4 66.6 52.0 40.5 83.7 Total metals Silver - Total mg/L 0.00150 0.00150 0.00150 0.00150 0.00150 Aluminum - Total mg/L 0.44 0.15 0.35 13.9 0.41 Arsenic - Total mg/L 0.00050 0.00050 0.00050 0.00800 0.00050 Cadmium - Total mg/L 0.00015 0.00015 0.00015 0.00015 0.00015 Chromium - Total mg/L 0.00400 0.00400 0.00400 0.00400 0.00400 Copper - Total mg/L 0.00250 0.00250 0.00250 0.00250 0.00250 Iron - Total mg/L 0.59 0.22 0.51 19.7 0.58 Mercury - Total mg/L 0.00025 0.00025 0.00025 0.00025 0.00025 Manganese - Total mg/L 0.02300 0.01100 0.02000 0.01875 0.02100 Molybdenum -Total mg/L 0.00200 0.00200 0.00200 0.00200 0.00200 Nickel - Total mg/L 0.00250 0.00250 0.00250 0.00250 0.00250 Lead - Total mg/L 0.00100 0.00100 0.00100 0.00100 0.00100 Antimony - Total mg/L 0.00050 0.00050 0.00050 0.00050 0.00050 Selenium - Total mg/L 0.00050 0.00050 0.00050 0.00050 0.00050 Zinc - Total mg/L 0.00200 0.00500 0.01300 0.04600 0.00400 Nutrients Ammonia - N mg/L 0.06 0.02 0.20 0.10 0.02 Nitrite - N mg/L 0.00300 0.00200 0.00600 0.00900 0.00700 Nitrate - N mg/L 0.20 0.20 0.30 0.30 0.30 Solids Turbidity NTU 13.0 3.30 35.0 410 10.0 TDS Total Dissolved Solids mg/L 124 109 90.0 79.0 163 TSS Total Suspended Solids mg/L 14.0 5.00 23.0 440 21.0 Trace Constituents Cyanide - Free mg/L Cyanide - Total mg/L Cyanide - WAD mg/L

130 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 W1.6 Kumtor River above Taragay River (2019) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Field Data Temperature °C 2.5 8.0 7.4 10.0 6.2 Conductivity mS/cm 0.580 0.678 0.289 0.258 0.637 pH 8.2 8.1 8.2 8.1 8.2 Major Constituents Calcium mg/L 55.9 50.4 32.6 30.3 40.2 Chloride mg/L 11.0 8.60 2.20 1.80 6.20 Carbonate mg/L 0.50 0.50 0.50 0.50 0.50 Bicarbonate mg/L 96.0 90.0 60.0 56.0 77.0 Potassium mg/L 5.44 7.63 4.25 3.20 9.96 Magnesium mg/L 24.8 32.6 12.0 9.6 16.6 Sodium mg/L 32.3 48.7 19.4 12.5 59.8 Sulphate mg/L 159 225 88.0 72.0 171 Hardness - Total mg/L 217 249 111 103 159 Alkalinity - Total mg/L 78.9 73.7 49.2 46.0 63.2 Total metals Silver - Total mg/L 0.00150 0.00150 0.00150 0.00150 0.00150 Aluminum - Total mg/L 3.81 1.46 0.63 10.9 0.56 Arsenic - Total mg/L 0.00500 0.00200 0.00050 0.00500 0.00050 Cadmium - Total mg/L 0.00015 0.00015 0.00015 0.00015 0.00015 Chromium - Total mg/L 0.00400 0.00400 0.00400 0.00400 0.00400 Copper - Total mg/L 0.00250 0.00250 0.00250 0.00250 0.00250 Iron - Total mg/L 6.34 2.42 0.60 11.6 0.35 Mercury - Total mg/L 0.00025 0.00025 0.00025 0.00060 0.00025 Manganese - Total mg/L 0.23400 0.16300 0.10500 0.43800 0.09900 Molybdenum -Total mg/L 0.02000 0.02800 0.01200 0.01200 0.03800 Nickel - Total mg/L 0.00250 0.00250 0.00250 0.00250 0.00250 Lead - Total mg/L 0.00100 0.00100 0.00100 0.01000 0.00100 Antimony - Total mg/L 0.01100 0.02100 0.00050 0.00500 0.02700 Selenium - Total mg/L 0.00200 0.00100 0.00050 0.00050 0.00050 Zinc - Total mg/L 0.01200 0.32700 0.01400 0.01700 0.00300 Nutrients Ammonia - N mg/L 0.99 1.92 0.64 0.64 2.20 Nitrite - N mg/L 0.00300 0.00200 0.00400 0.01000 0.04900 Nitrate - N mg/L 1.40 1.90 0.80 0.70 2.20 Solids Turbidity NTU 110 32.0 165 348 94.0 TDS Total Dissolved Solids mg/L 401 465 195 185 383 TSS Total Suspended Solids mg/L 196 71.0 336 595 91.0 Trace Constituents Cyanide - Free mg/L Cyanide - Total mg/L Cyanide - WAD mg/L

W1.7 Taragay River below Kumtor River (2019) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Field Data Temperature °C 8.6 10.5 8.3 11.5 8.1 Conductivity mS/cm 0.318 0.385 0.250 0.227 0.524 pH 8.2 8.2 8.2 8.1 8.2 Major Constituents Calcium mg/L 42.3 42.1 32.2 30.3 51.1 Chloride mg/L 8.30 7.20 2.40 2.50 7.50 Carbonate mg/L 0.50 0.50 0.50 0.50 0.50 Bicarbonate mg/L 90.0 91.0 64.0 64.0 102 Potassium mg/L 2.18 3.52 2.59 2.15 5.96 Magnesium mg/L 10.6 14.5 11.0 7.34 15.8 Sodium mg/L 10.3 21.2 10.9 7.61 34.8 Sulphate mg/L 61.0 92.0 63.0 51.0 115 Hardness - Total mg/L 132 156 106 95.0 174 Alkalinity - Total mg/L 73.8 74.7 52.7 52.5 83.4 Total metals Silver - Total mg/L 0.00150 0.00150 0.00150 0.00150 0.00150 Aluminum - Total mg/L 2.06 0.59 0.58 8.74 0.41 Arsenic - Total mg/L 0.00200 0.00100 0.00050 0.00500 0.00050 Cadmium - Total mg/L 0.00015 0.00015 0.00015 0.00015 0.00015 Chromium - Total mg/L 0.00400 0.00400 0.00400 0.00400 0.00400 Copper - Total mg/L 0.00250 0.00250 0.00250 0.00250 0.00250 Iron - Total mg/L 2.99 0.82 0.68 10.9 0.27 Mercury - Total mg/L 0.00025 0.00025 0.00025 0.00760 0.00025 Manganese - Total mg/L 0.08700 0.06000 0.08000 0.07250 0.06500 Molybdenum -Total mg/L 0.00600 0.01100 0.00900 0.00600 0.02100 Nickel - Total mg/L 0.00250 0.00250 0.00250 0.00250 0.00250 Lead - Total mg/L 0.00100 0.00100 0.00100 0.00700 0.00300 Antimony - Total mg/L 0.00300 0.00800 0.00300 0.00300 0.01400 Selenium - Total mg/L 0.00050 0.00050 0.00100 0.00050 0.00050 Zinc - Total mg/L 0.00700 0.00300 0.01900 0.01700 0.00300 Nutrients Ammonia - N mg/L 0.16 0.81 0.42 0.35 1.38 Nitrite - N mg/L 0.0050 0.0020 0.0080 0.0080 0.0250 Nitrate - N mg/L 0.50 0.90 0.60 0.50 1.50 Solids Turbidity NTU 58.0 18.0 128 263 47.0 TDS Total Dissolved Solids mg/L 198 246 161 139 321 TSS Total Suspended Solids mg/L 77.0 27.0 154 313 37.0 Trace Constituents Cyanide - Free mg/L Cyanide - Total mg/L Cyanide - WAD mg/L

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 131 W1.8 Naryn River 1km upstream of Naryn (2019) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Field Data Temperature °C 9.3 7.4 7.0 13.9 12.0 12.6 7.0 1.0 1.0 Conductivity mS/cm 0.259 0.240 0.291 0.335 0.544 0.513 0.487 pH 7.4 7.3 7.4 7.7 7.8 8.0 8.4 8.3 8.5 8.5 8.0 8.8 Major Constituents Calcium mg/L 50.5 53.5 51.7 49.3 45.7 42.4 36.3 46.8 48.9 48.1 56.4 50.4 Chloride mg/L 9.90 5.90 9.70 10.3 5.12 3.60 2.30 5.34 5.23 5.55 5.30 9.80 Carbonate mg/L 0.50 0.50 0.50 0.50 0.50 0.50 0.50 1.30 1.13 2.75 4.00 0.50 Bicarbonate mg/L 152 146 142 138 128 117 102 120 124 131 138 149 Potassium mg/L 3.36 1.56 3.71 3.43 1.56 1.35 1.63 1.66 2.92 1.69 1.53 5.49 Magnesium mg/L 14.3 15.9 15.8 14.9 13.5 11.2 9.37 12.3 13.8 13.5 16.4 15.0 Sodium mg/L 10.7 8.81 12.5 10.3 7.11 6.41 4.67 7.62 7.85 7.09 8.92 8.27 Sulphate mg/L 69.0 63.0 52.0 56.8 47.8 51.0 45.5 59.4 70.8 68.0 70.0 68.0 Hardness - Total mg/L 142 136 132 134 155 148 117 161 167 176 182 189 Alkalinity - Total mg/L 124 120 117 114 105 95.8 83.5 100 103 114 120 122 Total metals Silver - Total mg/L 0.00150 0.00150 0.00150 0.00150 0.00150 0.00150 0.00150 0.01460 0.00150 0.00150 0.00150 0.00150 Aluminum - Total mg/L 0.42 0.17 0.20 0.80 4.31 1.84 6.50 7.74 0.60 0.12 0.09 0.11 Arsenic - Total mg/L 0.00050 0.00050 0.00050 0.00063 0.00270 0.00125 0.00375 0.00562 0.00050 0.00050 0.00050 0.00050 Cadmium - Total mg/L 0.00015 0.00015 0.00015 0.00015 0.00015 0.00015 0.00015 0.00015 0.00019 0.00015 0.00015 0.00015 Chromium - Total mg/L 0.00400 0.00400 0.00400 0.00400 0.00500 0.00400 0.01000 0.00840 0.00400 0.01100 0.00400 0.00400 Copper - Total mg/L 0.00250 0.00250 0.00250 0.00338 0.00540 0.00313 0.00538 0.00320 0.00363 0.04513 0.00250 0.00250 Iron - Total mg/L 1.22 0.29 0.48 1.19 5.69 2.23 9.14 10.5 0.73 0.31 0.13 0.16 Mercury - Total mg/L 0.00025 0.00025 0.00025 0.00025 0.00025 0.00025 0.00025 0.00025 0.00025 0.00025 0.00025 0.00025 Manganese - Total mg/L 0.00800 0.01300 0.02200 0.06225 0.09800 0.07600 0.02400 0.06167 0.03300 0.01675 0.01300 0.01300 Molybdenum -Total mg/L 0.00200 0.00200 0.00200 0.00200 0.00200 0.00275 0.00200 0.00200 0.00400 0.00375 0.00500 0.00500 Nickel - Total mg/L 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00320 0.00375 0.00250 0.00250 0.00250 Lead - Total mg/L 0.00100 0.00100 0.00100 0.00100 0.00240 0.00125 0.00600 0.00660 0.00100 0.00100 0.00100 0.00100 Antimony - Total mg/L 0.00050 0.00050 0.00050 0.00050 0.00050 0.00050 0.00075 0.00110 0.00150 0.00050 0.00050 0.00050 Selenium - Total mg/L 0.00300 0.00050 0.00050 0.00150 0.00110 0.00050 0.00050 0.00160 0.00113 0.00213 0.00050 0.00050 Zinc - Total mg/L 0.00600 0.00300 0.00500 0.00775 0.01500 0.01875 0.02225 0.06760 0.00650 0.00400 0.00700 0.00500 Nutrients Ammonia - N mg/L 0.08 0.09 0.06 0.17 0.12 0.13 0.23 0.17 0.21 0.10 0.08 0.02 Nitrite - N mg/L 0.00100 0.00300 0.00500 0.01125 0.00520 0.00825 0.00225 0.00370 0.00825 0.00475 0.00100 0.00050 Nitrate - N mg/L 0.70 0.70 0.40 0.73 0.64 0.58 0.50 0.98 0.63 0.63 0.70 0.70 Solids Turbidity NTU 3.90 2.80 2.40 23.7 26.3 52.3 296 219 31.0 3.15 2.10 2.50 TDS Total Dissolved Solids mg/L 235 264 226 231 202 192 165 210 224 238 236 255 TSS Total Suspended Solids mg/L 6.00 7.00 4.00 40.7 43.3 61.5 414 163 57.0 6.75 2.00 2.00 Trace Constituents Cyanide - Free mg/L 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 Cyanide - Total mg/L 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 Cyanide - WAD mg/L 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250

P5.2N Tap Water at the New Camp (2019) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Field Data Temperature °C 9.1 9.2 9.3 9.4 9.5 11.8 11.3 12.8 10.9 11.6 12.0 9.9 Conductivity mS/cm 0.127 0.125 0.126 0.125 0.127 0.107 0.114 0.116 0.111 0.114 0.113 0.104 pH 8.0 8.0 7.9 8.1 7.9 8.0 8.0 8.0 8.0 8.0 8.2 7.8 Major Constituents Calcium mg/L 17.0 17.8 18.1 16.6 15.2 13.3 14.3 13.6 14.3 13.8 15.9 16.8 Chloride mg/L 1.45 1.23 1.06 1.73 2.13 1.52 1.13 1.22 2.30 1.15 1.24 1.03 Carbonate mg/L 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.80 0.50 0.50 1.20 0.50 Bicarbonate mg/L 39.8 38.0 38.2 36.5 34.0 29.8 36.0 30.8 30.3 32.0 34.6 37.3 Potassium mg/L 1.53 1.62 1.60 1.47 1.54 1.22 1.29 1.09 1.14 1.03 1.27 1.33 Magnesium mg/L 3.29 3.21 3.56 3.22 2.86 2.50 3.26 3.42 2.79 2.68 4.45 3.35 Sodium mg/L 2.56 2.37 2.36 2.69 2.75 2.22 2.01 1.82 2.90 1.66 2.11 2.15 Sulphate mg/L 20.8 24.3 23.0 20.5 19.5 19.2 21.3 23.0 22.3 22.8 23.8 24.8 Hardness - Total mg/L 46.5 45.5 47.8 41.8 46.0 41.4 45.3 46.0 44.8 46.5 50.8 51.8 Alkalinity - Total mg/L 32.5 31.0 31.1 30.1 27.7 24.5 29.3 25.6 24.8 26.4 29.8 30.7 Total metals Silver - Total mg/L 0.00150 0.00150 0.00150 0.00150 0.00150 0.00150 0.00150 0.00150 0.00150 0.00150 0.00150 0.00150 Aluminum - Total mg/L 0.23 0.09 0.07 0.12 0.06 0.14 0.23 0.15 0.17 0.09 0.11 0.09 Arsenic - Total mg/L 0.00050 0.00050 0.00050 0.00050 0.00050 0.00050 0.00050 0.00050 0.00050 0.00050 0.00050 0.00050 Cadmium - Total mg/L 0.00015 0.00015 0.00015 0.00015 0.00015 0.00015 0.00015 0.00015 0.00015 0.00015 0.00015 0.00015 Chromium - Total mg/L 0.00400 0.00400 0.00400 0.00400 0.00400 0.00400 0.00400 0.00400 0.00400 0.00400 0.00400 0.00400 Copper - Total mg/L 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 Iron - Total mg/L 0.08 0.05 0.08 0.14 0.07 0.06 0.14 0.10 0.11 0.06 0.07 0.05 Mercury - Total mg/L 0.00025 0.00025 0.00025 0.00025 0.00025 0.00025 0.00025 0.00025 0.00025 0.00025 0.00025 0.00031 Manganese - Total mg/L 0.00350 0.00400 0.00360 0.00375 0.00325 0.00250 0.00750 0.00500 0.00425 0.00325 0.00320 0.01200 Molybdenum -Total mg/L 0.00300 0.00275 0.00240 0.00200 0.00200 0.00200 0.00200 0.00200 0.00200 0.00325 0.00260 0.00200 Nickel - Total mg/L 0.00250 0.00250 0.00610 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00638 Lead - Total mg/L 0.00100 0.00100 0.00100 0.00100 0.00100 0.00100 0.00100 0.00260 0.00100 0.00100 0.00100 0.00100 Antimony - Total mg/L 0.00050 0.00050 0.00050 0.00050 0.00050 0.00050 0.00050 0.00050 0.00088 0.00050 0.00050 0.00050 Selenium - Total mg/L 0.00050 0.00050 0.00050 0.00088 0.00075 0.00050 0.00050 0.00080 0.00050 0.00050 0.00110 0.00050 Zinc - Total mg/L 0.00125 0.00200 0.00120 0.00238 0.00238 0.00280 0.00313 0.00370 0.00213 0.00450 0.00350 0.00225 Nutrients Ammonia - N mg/L 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 Nitrite - N mg/L 0.00050 0.00050 0.00050 0.00050 0.00050 0.00050 0.00050 0.00050 0.00050 0.00050 0.00050 0.00063 Nitrate - N mg/L 0.38 0.40 0.38 0.35 0.33 0.26 0.35 0.30 0.30 0.30 0.25 0.33 Solids Turbidity NTU 2.65 0.57 0.40 0.53 0.25 0.87 5.98 3.74 3.50 1.45 1.62 0.35 TDS Total Dissolved Solids mg/L 72.5 74.3 70.2 72.5 69.3 62.0 72.3 65.8 63.3 68.5 67.2 74.0 TSS Total Suspended Solids mg/L 2.50 0.50 0.50 0.50 0.50 0.60 4.00 3.20 2.38 1.00 1.10 0.50 Trace Constituents Cyanide - Free mg/L Cyanide - Total mg/L Cyanide - WAD mg/L

132 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 P5.3 Mill Kitchen Tap (2019) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Field Data Temperature °C 12.4 12.3 13.0 11.8 12.1 14.3 15.9 16.5 15.0 13.6 13.7 15.8 Conductivity mS/cm 0.124 0.127 0.128 0.152 0.117 0.125 0.124 0.110 0.116 0.121 0.116 0.106 pH 8.0 7.9 7.8 7.9 7.9 7.9 7.9 7.9 8.0 7.8 7.7 7.8 Major Constituents Calcium mg/L 16.9 17.9 18.6 16.9 15.0 14.2 14.5 14.0 14.6 13.9 17.1 16.8 Chloride mg/L 1.25 1.63 0.98 4.35 2.70 2.10 1.55 1.98 1.75 1.95 1.94 2.15 Carbonate mg/L 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 0.50 Bicarbonate mg/L 35.0 32.8 30.4 24.8 28.8 28.0 31.8 31.0 29.0 26.8 27.0 31.8 Potassium mg/L 1.50 2.16 1.75 2.24 1.30 1.30 1.28 1.34 1.25 1.08 1.31 1.33 Magnesium mg/L 3.28 3.19 3.62 3.24 2.73 2.48 3.27 2.69 2.89 2.71 3.35 3.47 Sodium mg/L 2.32 2.34 2.50 4.56 3.53 2.67 2.38 2.28 2.44 2.25 2.70 2.98 Sulphate mg/L 24.5 29.0 31.4 29.8 22.3 19.4 25.3 21.0 23.5 28.0 31.0 30.3 Hardness - Total mg/L 47.5 46.5 48.0 40.8 44.5 40.2 46.8 44.2 44.5 46.8 49.6 53.8 Alkalinity - Total mg/L 28.6 26.8 24.8 20.4 23.6 22.8 26.1 25.7 23.8 22.0 22.0 25.9 Total metals Silver - Total mg/L 0.00150 0.00150 0.00150 0.00150 0.00150 0.00150 0.00150 0.00150 0.00150 0.00150 0.00150 0.00150 Aluminum - Total mg/L 0.19 0.34 0.08 0.20 0.14 0.27 0.08 0.09 0.10 0.08 0.10 0.10 Arsenic - Total mg/L 0.00050 0.00050 0.00050 0.00050 0.00050 0.00050 0.00050 0.00050 0.00050 0.00050 0.00050 0.00050 Cadmium - Total mg/L 0.00015 0.00015 0.00015 0.00015 0.00015 0.00015 0.00015 0.00015 0.00015 0.00015 0.00015 0.00015 Chromium - Total mg/L 0.00400 0.00400 0.00400 0.00400 0.00400 0.00400 0.00400 0.00400 0.00400 0.00400 0.00400 0.00400 Copper - Total mg/L 0.00250 0.00250 0.00370 0.00250 0.00313 0.00250 0.00313 0.00250 0.00250 0.00313 0.00340 0.00313 Iron - Total mg/L 0.05 0.05 0.11 0.12 0.03 0.07 0.06 0.06 0.05 0.04 0.06 0.04 Mercury - Total mg/L 0.00025 0.00025 0.00025 0.00025 0.00025 0.00025 0.00025 0.00025 0.00025 0.00025 0.00025 0.00025 Manganese - Total mg/L 0.00350 0.00425 0.00700 0.00525 0.00300 0.00340 0.00575 0.00420 0.00375 0.00300 0.00280 0.00650 Molybdenum -Total mg/L 0.00325 0.00450 0.00200 0.00200 0.00200 0.00200 0.00200 0.00200 0.00200 0.00325 0.00200 0.00200 Nickel - Total mg/L 0.00250 0.00725 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00313 0.00300 0.00250 Lead - Total mg/L 0.00100 0.00100 0.00100 0.00100 0.00125 0.00100 0.00100 0.00100 0.00100 0.00100 0.00100 0.00100 Antimony - Total mg/L 0.00050 0.00050 0.00050 0.00050 0.00050 0.00050 0.00050 0.00050 0.00050 0.00050 0.00050 0.00050 Selenium - Total mg/L 0.00050 0.00050 0.00050 0.00050 0.00075 0.00050 0.00050 0.00080 0.00050 0.00200 0.00060 0.00050 Zinc - Total mg/L 0.00338 0.00550 0.00410 0.00463 0.00350 0.00280 0.00313 0.00270 0.00263 0.00375 0.00460 0.00775 Nutrients Ammonia - N mg/L 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 Nitrite - N mg/L 0.00050 0.00050 0.00090 0.00050 0.00050 0.00050 0.00050 0.00050 0.00063 0.00050 0.00050 0.00050 Nitrate - N mg/L 0.40 0.40 0.33 0.26 0.38 0.26 0.30 0.30 0.30 0.30 0.30 0.38 Solids Turbidity NTU 0.80 2.03 3.04 1.18 0.42 1.52 0.48 1.52 0.97 0.51 0.38 0.32 TDS Total Dissolved Solids mg/L 72.8 75.3 82.2 77.5 68.0 62.8 76.3 64.8 65.8 67.0 74.0 78.0 TSS Total Suspended Solids mg/L 0.88 1.38 1.30 1.13 0.50 1.30 1.13 1.00 0.88 0.50 0.50 0.50 Trace Constituents Cyanide - Free mg/L 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 Cyanide - Total mg/L 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 Cyanide - WAD mg/L 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250 0.00250

SDP Treated Sewage Discharge into Kumtor River (2019) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Field Data Temperature °C 13.6 17.0 18.6 16.6 16.6 Conductivity mS/cm 0.518 0.419 0.289 0.736 1.086 pH 8.4 8.6 8.1 7.9 8.0 Major Constituents Calcium mg/L 21.4 24.4 21.2 17.5 25.0 Chloride mg/L Carbonate mg/L 8.00 1.00 0.50 0.50 0.50 Bicarbonate mg/L 34.0 68.0 72.0 50.8 89.8 Potassium mg/L 5.79 5.06 6.50 3.43 4.92 Magnesium mg/L 4.69 10.0 5.47 3.85 6.78 Sodium mg/L 29.5 34.3 31.9 15.1 22.8 Sulphate mg/L 38.0 59.7 38.0 28.4 44.0 Hardness - Total mg/L 68.0 97.3 70.7 54.6 86.5 Alkalinity - Total mg/L 41.1 57.2 58.9 41.7 73.6 Total metals Silver - Total mg/L Aluminum - Total mg/L Arsenic - Total mg/L Cadmium - Total mg/L Chromium - Total mg/L Copper - Total mg/L Iron - Total mg/L Mercury - Total mg/L Manganese - Total mg/L Molybdenum -Total mg/L Nickel - Total mg/L Lead - Total mg/L Antimony - Total mg/L Selenium - Total mg/L Zinc - Total mg/L Nutrients Ammonia - N mg/L 0.19 0.28 2.28 1.15 2.74 Nitrite - N mg/L 0.06800 0.03133 0.55500 0.02680 0.01100 Nitrate - N mg/L 3.30 0.83 0.30 0.42 0.65 Solids Turbidity NTU 11.0 6.20 12.4 11.4 3.62 TDS Total Dissolved Solids mg/L 214 226 206 115 180 TSS Total Suspended Solids mg/L 8.00 5.67 13.8 8.20 2.13 Trace Constituents Cyanide - Free mg/L Cyanide - Total mg/L Cyanide - WAD mg/L

ENVIRONMENT AND SUSTAINABILITY REPORT 2019 133 MAD and MAC Limits W1.5.1 Parameter Units T8.4 (MAD Limit) SDP (MAD Limit) (MAC Limit - Communal Use) Chlorine (Cl) mg/L 21,72 350 350 Magnesium mg/L 808,60 50 Sodium mg/L 1157,19 200 Sulphate mg/L 254,8 500 Silver - Total mg/L 0,05 Aluminum - Total mg/L 0,5 Arsenic - Total mg/L 0,01 Boron (B) mg/L 0,5 Barium (Ba) mg/L 0,7 Beryllium (Be) mg/L 0,0002 Bismuth (Bi) mg/L 0,1 Cadmium - Total mg/L 0,001 Cobalt (Co) mg/L 0,1 Chromium - Total mg/L 1,00 0,05 Copper - Total mg/L 1 Fluorine mg/L 1,8 1,5 Iron - Total mg/L 0,3 Mercury - Total mg/L 0,29 0,0005 Manganese - Total mg/L 1,014 0,1 Molybdenum - Total mg/L 0,040 0,25 Nickel - Total mg/L 0,02 Lead - Total mg/L 0,492 0,01 Antimony - Total mg/L 0,005 Selenium - Total mg/L 0,01 Silicon mg/L 10 Vanadium mg/L 1,00 0,1 Zinc - Total mg/L 23,48 1 Ammonia - N mg/L 2,01 1,5 Nitrite - N mg/L 8,39 3,3 Nitrate - N mg/L 0,1280 120,10 45 Cyanide - Free (CN-F) mg/L Cyanide - WAD (CN-WAD) mg/L 77,7 0,035 Total Suspended Solids (TSS) mg/L 161,3 Biochemical Oxygen Demand (BOD5) mg/L 19,68 MBAS mg/L 10,5 0,5 Hydrocarbons mg/L 0,3

Laboratory Detection Limit Parameter Units Method Detection Limit Major Constituents Calcium mg/l 0,05 Chloride mg/l 0,5 Carbonate mg/l 1 Bicarbonate mg/l 1 Potassium mg/l 0,09 Magnesium mg/l 0,5 Sodium mg/l 0,5 Sulphate mg/l 1 Hardness - Total mg/l 1 Alkalinity - Total mg/l 1 Total metals Silver - Total mg/l 0,003 Aluminum - Total mg/l 0,03 Arsenic - Total mg/l 0,005 Cadmium - Total mg/l 0,0003 Chromium - Total mg/l 0,008 Copper - Total mg/l 0,005 Iron - Total mg/l 0,004 Mercury - Total mg/l 0,0005 Manganese - Total mg/l 0,003 Molybdenum - Total mg/l 0,005 Nickel - Total mg/l 0,005 Lead - Total mg/l 0,002 Antimony - Total mg/l 0,001 Selenium - Total mg/l 0,001 Zinc - Total mg/l 0,001 Nutrients Ammonia - N mg/l 0,04 Nitrite - N mg/l 0,001 Nitrate - N mg/l 0,1 Solids Turbidity NTU 0,35 TDS Total Dissolved Solids mg/l 1 TSS Total Suspended Solids mg/l 1 Trace Constituents Cyanide - Free mg/l 0,2 Cyanide - Total mg/l 0,005 Cyanide - WAD mg/l 0,005

134 ENVIRONMENT AND SUSTAINABILITY REPORT 2019 Cautionary note regarding forward-looking statements Certain information contained or incorporated by reference herein may include “forward- looking- statements” within the meaning of certain securities laws. Such forward-looking statements involve risks, uncertainties, and other factors that could cause actual results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking statements. For a detailed discussion of such risks, uncertainties, and other factors, the Management’s Discussion and Analysis included in Centerra’s most recent Annual Report and Annual Information Form, both of which are available on Centerra’s website www.centerragold.com. Although Centerra believes that the assumptions inherent in these forward-looking statements are reasonable, the reader should not place undue reliance on these statements. Forward-looking information is as of December 31, 2018 Centerra disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. The data in this Report has not been independently verified.

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ENVIRONMENT AND SUSTAINABILITY REPORT 2019 135

What else can we make to improve our performance? ENVIRONMENT AND To provide your feedback about our performance, please SUSTAINABILITY contact us at [email protected] REPORT or visit www.kumtor.kg.

136 ENVIRONMENT AND SUSTAINABILITY REPORT 2019